Top Textiles Producer Nosedives 13% During Muhurat Session on SEBI’s Order

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Top Textiles Producer Nosedives 13% During Muhurat Session on SEBI’s Order

By Malvika Gurung -- Shares of the leading textile producer and the flagship company of the Wadia Group, Bombay Dyeing (NS: BDYN ) & Manufacturing Company plunged 12.71% to Rs 83.8 apiece during the customary 1-hour Muhurat Trading session on Monday, defying the Street’s mood.

The markets regulator Sebi banned the company, along with its promoters Nusli N Wadia, Ness Wadia and Jehangir Wadia from accessing the security markets for two years for alleged manipulation of financial statements, which led to misleading share price movements of the company.

According to Sebi’s order, a penalty of Rs 15.75 crore has been levied on 10 entities, including 2 companies and 8 individuals for misrepresenting financial statements, while the violators have been charged under the Prevention of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.

The 100-page Sebi order reads that due to the misrepresentation of financial statements of BDMCL, the revenues and profit of BDMCL were inflated by Rs 2,493.94 crore and Rs 1,302.2 crore, respectively, during the period from FY2011-12 to FY 2017-18.

Here’s how the overall fine break-up appears as per the Sebi order,

  • Rs 2.25 crore on Bombay Dyeing,
  • Rs 5 crore on Jehangir Wadia,
  • Rs 4 crore on Nusli Wadia,
  • Rs 2 crore on Ness Wadia,
  • Rs 1 core on Scal Services,
  • Rs 50 lakh on Mehta, and
  • Rs 25 lakh each on the then directors of Scal Services.

For more insights on the Muhurat Trading session, continue reading Muhurat Trading 2022: D-St Opens Higher, Banking & Financial Stocks Shine & More

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