Bombay Dyeing and Manufacturing Company Ltd has been barred from the securities markets for two years by the country’s capital market regulator. The company, which is part of the Wadia Group and deals in real estate, polyester and textiles, is among 10 entities facing sanctions for allegedly misrepresenting financial statements.
The Securities and Exchange Board of India (SEBI) issued a statement late on Friday evening barring Bombay Dyeing and its “promoters” (owners) – Nusli N Wadia and his sons Ness and Jehangir – from the stock market for up to two years. Also named and punished are Scal Services Ltd, a Wadia Group company, its former directors DS Gagrat, NH Datanwala, Shailesh Karnik and R Chandrasekharan and Durgesh Mehta, who was the joint managing director and CFO of Bombay Dyeing.
Wadia Group is one of the oldest conglomerates in India with a presence in several diversified industries including consumer goods, real estate, civil aviation, textiles, chemicals and food processing. Four companies in the Wadia group are listed on Indian stock exchanges, including Bombay Dyeing.
SEBI said it had imposed fines totaling ₹1,575,000 (US$1.91 million) on the named parties for “engaging in a fraudulent scheme to misrepresent the company’s financial statements”. The regulator said it has conducted a detailed investigation into Bombay Dyeing’s 2011-2012 and 2018-2019 affairs. The Wadia Group has been contacted for comment.
