Bombay Dyeing faces two year ban from securities market

By

Isabelle Crossley

Published
Oct 24, 2022

Textiles business Bombay Dyeing Co and its promoters Nusli, Jehangir, and Ness Wadia have been banned from the Indian securities market for two years by the Securities and Exchange Board of India. The business has been banned for allegedly misrepresenting financials, ET Bureau reported. 

Sebi ruled that the heads of Bombay Dyeing Co had purposefully committed fraudulent actions. In its order issued on October 21, Sebi also banned Nusli, Jehangir, and Ness Wadia from holding the position of director and from being key managerial personnel in any listed business for the next year. 
 
“The planned reduction of shareholding in Scal to 19% to avoid consolidation of financial statements of Scal, execution of non-genuine sales to Scal through memorandums of understanding, granting deferment of payment to Scal (and not any other bulk buyer), inflation of sales and profit of BDMCL, non-realisation of payments from Scal etc, were all different legs of the broad ‘scheme of fraud’ perpetrated under the supervision and control of Noticee number 3,4, and 5 (Wadias) while they were at the helm of affairs at BDMCL,” said Sebi in a statement, the Economic Times reported. 

Bombay Dyeing Co is run by parent company Wadia Group. Following the ruling on Friday, the business stated that it will exercise its right to appeal Sebi’s decision and insisted that all of its transactions have been legitimate and in compliance with the law.