Sebi Bans 5 Companies From Stock Markets Over Alleged Financial Mismanagement
NDTV
Sebi found that MFL has negligible fixed assets on its books and negative cash flow from its operating activity and a very low inventory as compared to its sizeable sale figures during the investigation period.
Sebi on Thursday restrained five entities, including Mishtann Foods and its promoter and CMD Hiteshkumar Gaurishankar Patel, from the securities markets till further orders for alleged financial mismanagement, fraudulent transactions, and corporate governance lapses.
The regulator also barred Mishtann Foods Ltd (MFL) from raising money from the public as well as prohibited 12 entities, including Hiteshkumar, Navinchandra Patel (CFO), Ravikumar Patel (former CFO) and Jatinbhai Patel (former whole time director) from associating themselves with any Sebi-registered entity or, any listed company or any firm that intends to raise money from the public, until further orders.
Sebi found that MFL has negligible fixed assets on its books and negative cash flow from its operating activity and a very low inventory as compared to its sizeable sale figures during the investigation period and were prima facie found to be fictitious involving circular flow of funds.
