Shares of Man Industries (India) Ltd. plunged 13.86% to ₹356.20 on Tuesday, September 30, after the Securities and Exchange Board of India (SEBI) barred the company and its top executives from accessing the securities markets for two years.
The action stems from allegations of fund diversion and financial misrepresentation. SEBI’s probe found that the company failed to consolidate its unit Merino Shelters in its financials between FY2015 and FY2021, misrepresented related-party transactions, and engaged in round-tripping of funds to mask its financial position.
The order names Chairman Ramesh Mansukhani, Managing Director Nikhil Mansukhani, and former finance chief Ashok Gupta, with each facing a penalty of ₹2.5 crore, in addition to the company itself.
The SEBI order has triggered heavy investor selling, dragging the stock sharply lower in Tuesday’s session.
