SEBI bans Asahi Infra and 18 other entities for ten years
Market regulator Securities & Exchange Board of India (SEBI), on Wednesday, barred 19 domestic and foreign entities from securities markets for manipulation in issuance of global depository receipts and warned several others including FIIs.
The regulator has imposed a ten-year ban on K Sera Sera and Asahi Infrastructure and Projects, which figured among the six companies whose GDR issuance were manipulated, while at least 26 entities including European American Investment Bank AG (Euram) have been warned that all their future dealings in Indian markets should be strictly as per regulations.
Sebi has been probing misuse of GDRs (Global Depository Receipts) for routing black money back to India for which role of more than 50 individuals and companies was under scanner. The modus-operandi typically involves creating an intricate web of entities in offshore locations for multi- layered transfers of funds before bringing them back to India. In the cases under scanner, it was noticed that the companies had shown raising funds without actually involving real investors, hinting at possible routing of black money.