MUMBAI: The Securities and Exchange Board of India (Sebi) on Thursday barred media and entertainment firm Eros International Media, its promoters, managing director Sunil Arjan Lulla and CEO Pradeep Kumar Dwivedi from the securities markets for accounting irregularities.
“There is sufficient material on record to arrive at a prima-facie finding that the books of accounts of the company have been overstated and do not present a true and fair picture of the financial health of the company,” said Sebi in its order.
In addition, Lulla and Dwivedi have been prohibited from holding the position of a director or key managerial personnel in any listed company, including Eros International or its subsidiaries until further orders, according to an interim order.
Apart from Eros International and its two senior executives, the two promoter entities Eros Worldwide FZ LLC and Eros Digital Private Ltd have also been restrained by the market regulator. The regulator has directed BSE to appoint a forensic auditor to examine the books of accounts of the three exclusively BSE-listed companies - Thinkink Picturez, Mediaone Global Entertainment, and Spicy Entertainment and Media Ltd, who prima facie acted as conduits in the alleged diversion of funds by Eros. The forensic auditor will submit the report to the exchange within three months. The order followed an investigation conducted by Sebi into the affairs of the company after receiving a preliminary examination report (PER) from the NSE.