Mumbai: Capital markets regulator Securities and Exchange Board of India (Sebi) on Monday banned indefinitely Gujarat Heavy Chemicals Ltd (GHCL) and its promoters from trading.
The regulator has also restricted GHCL’s chairman, managing director and the company secretary from trading in the markets.
The order, passed by whole-time Sebi member K.M. Abraham, said the firm has been misreporting shareholding details of its promoters in their quarterly filings with the stock exchanges.
The Sebi order said the disclosures on promoter holdings made by the firm across the four quarters in 2008 are at “significant variance” with actual holdings.
“The misleading difference in the holding is as divergent as 17.65% being the actual and 40.30% being the disclosed holding for the quarter ended September—a difference of more than 100%,” the regulator said in its order.
The market watchdog has directed GHCL to “reconcile and file the correct shareholding” with the exchanges.