Politics · India Bureau
Sebi suspends EKI Energy MD, imposes Rs 88 lakh penalty for financial fraud
India's markets regulator has barred EKI Energy Services and its Managing Director Manish Kumar Dabkara from securities markets for misrepresenting financial statements and diverting funds. The regulator has also imposed substantial penalties on the carbon credits trading firm and senior executives.
LSN India ·
The Securities and Exchange Board of India (Sebi) has taken enforcement action against EKI Energy Services Ltd and multiple executives for breaches of securities market regulations. Dabkara has been prohibited from the securities market for 12 months, while the company itself faces a two-month bar from market activities.
Four other senior officials have also been suspended from market participation for varying periods. Former Chief Financial Officer Mohit Kumar Agarwal has been restrained for eight months, while whole-time directors Naveen Sharma and Sonali Sheikh have been barred for five months and one month respectively.
Sebi's 94-page final order found that EKI Energy prematurely recognised revenue totalling Rs 197.04 crore during the first three quarters of financial year 2022-23, in violation of accounting standards. The investigation also revealed that funds were diverted from the company's accounts.
The regulator has imposed combined monetary penalties of Rs 88 lakh on the company and individuals for various violations of securities regulations. Additionally, Sebi has directed Dabkara to immediately initiate steps to recover the diverted amounts and return them to EKI Energy Services.