After clamping down on the promoters of Zee Entertainment, SEBI has now barred Eros International Media’s Managing Director Sunil Arjan Lulla and CEO Pradeep Kumar Dwivedi from holding any board positions for engaging in alleged financial misreporting, siphoning and diversion of funds.
The two senior executives, the company, Eros Worldwide FZ and Eros Digital Private Ltd have been banned from accessing the securities markets until further orders.
“The company is still advancing funds to entities that have been potentially involved in siphoning off funds to entities related to the promoters, makes it imperative for SEBI as the market regulator to take action in the interest of the public shareholders of the company,” SEBI said.
“The potential transgressions observed during the investigation date back to FY12. The Board of Directors and the Audit Committee should have been vigilant enough to sound the alarm when they saw flags so red they are downright crimson. The apparent failure of the Board of Directors and the Audit Committee can at best be termed callous and at its worst may indicate a complete abdication of responsibilities and granting a free run to the promoters,” it added.
SEBI has asked BSE to appoint a forensic auditor to examine the books of accounts of the three exclusively BSE-listed companies, namely Thinkink Picturez Ltd, Mediaone Global Entertainment Ltd and Spicy Entertainment and Media Ltd, which prima facie acted as conduits in the alleged misrepresentation/diversion of funds by Eros.