The Securities and Exchange Board of India on Friday restrained Vijay Mallya from accessing the securities market for a period of three years for illegally routing funds into the Indian stock market from Jan. 1, 2006, to March 31, 2008, using his UBS AG bank accounts in London.
He has also been asked to not associate with any listed company or proposed-to-be listed company in any capacity. The market regulator has also frozen Mallya's existing holding of securities, including the holding of units of mutual funds for this period of restraint.
SEBI found that Mallya engaged in fraudulent practices by using rigmarole transactions and fund flows through his overseas companies to trade in shares of his own group companies while concealing his identity. This behaviour violates regulatory norms and threatens market integrity, SEBI observed.
Earlier, SEBI had imposed a three-year market ban on Mallya from June 1, 2018, for manipulative activities, including fund diversion and improper transactions related to the United Spirits Ltd. scrip. Additionally, it restricted him from holding directorial or managerial positions in listed companies for five years.
This order was upheld after Mallya's challenge was dismissed due to a lack of prosecution. SEBI concluded that Mallya continued to engage in manipulative and fraudulent activities in the securities market.
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