Cracking the whip, regulator Sebi barred beleaguered businessman Vijay Mallya and six others from the securities market in a case related to alleged fund diversions from United Spirits Ltd.
Besides, Mallya and former United Spirits' official Ashok Capoor have been restrained from "holding position as directors or key managerial persons (KMPs) of any listed company".
In an order issued on Wednesday, Sebi has restrained Mallya and six others from the securities market and also from "buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly" till further directions.
The six others are: Ashok Capoor, PA Murali, Sowmiyanarayanan, SN Prasad, Paramjit Singh Gill and Ainapur SR.
Sebi has been looking into the matter pertaining to alleged fund diversions and improper transactions at United Spirits Ltd (USL).
Mallya resigned as director and chairman of USL in March 2016. Sebi's order also comes close on the heels of CBI naming Mallya, Kingfisher Airlines and nine others, in the charge sheet related to the 2015 loan default case.
In a 32-page order, Sebi Whole Time Member S Raman said the alleged prima facie violations observed in the case are serious and have larger implications on the safety and integrity of the securities market.
"Investors might have based their investment decisions on the manipulated books of accounts prepared and presented by these persons. "It would therefore not be in the interest of the securities market and the interest of investors to allow persons of such doubtful demeanour to continue to act as KMPs in the company or in other listed companies or allow them to deal in the securities market," he said.
According to him, pending investigations in the matter, effective preventive and remedial actions needs to be taken.