Express Pharma

Sebi refuses stay on forensic audit of Venmax Drugs

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Besides, shares held by VDPLs promoters and directors should not be allowed to be transferred for sale by depositories, the order had said.

Markets regulator Sebi has refused to grant a stay on forensic audit of Venmax Drugs and Pharmaceuticals, which figures in the list of suspected shell companies. In an interim order passed in December 2017, Sebi had directed the BSE to appoint an independent forensic auditor to verify any misrepresentation of financials and business of Venmax Drugs and Pharmaceuticals Ltd (VDPL) as well as any misuse of the funds or manipulation of books of accounts.

Besides, shares held by VDPLs promoters and directors should not be allowed to be transferred for sale by depositories, the order had said.

In a fresh order recently, the regulator said, it “confirms the directions issued against VDPL vide interim order” as the company failed to give sufficient explanations regarding the loans write-off and other financial transactions, which raised questions of genuineness.

VDPL is among the firms against whom Sebi initiated action on August 7, 2017 by ordering trading restrictions after it received the list of 331 suspected shell companies from the government.

Consequently, VDPL had moved Securities Appellate Tribunal (SAT) against the trading restrictions following which Sebi had directed that trading in the securities of VDPL will be reverted to the status prior to August 7, when the curbs were imposed.

However, the Securities and Exchange Board of India (Sebi) was asked to continue its probe and initiate appropriate proceedings as it deemed fit.

 

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