Prime Focus shares in focus as SEBI halts proceedings in misleading financials case

SEBI's adjudicating officer has disposed of proceedings against Prime Focus, ruling that allegations of misleading financial statements, accounting irregularities, and violations of listing and anti-fraud regulations could not be substantiated. The case, which arose from the transfer of its VFX business to DNEG and sale of its post-production business worth around Rs 200 crore in FY20 and Rs 250 crore in FY22, saw relief extended to nine noticees including promoter-directors Naresh Malhotra and Namit Malhotra, CFO Nishant Fadia, and independent directors. The show-cause notice issued in December 2023 has been fully disposed of in the company's favour.