The Exchange has sought clarification from Seya Industries Limited with respect to recent news item captioned Sebi imposes Rs 58.5 crore penalty on Seya Industries? top executives for financial fraud and fund diversion. The response from the Company is attached.
SEYAIND · price
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SEBI has passed a final order dated 2 May 2025 against Seya Industries Limited and four of its top officials — Chairman & MD Ashok Ghanshyamdas Rajani, Executive Director Asit Kumar Bhowmik, Director Sivaprasada Rao Buddi, and CFO Amrit Ashok Rajani — for alleged violations of SEBI's Prohibition of Fraudulent and Unfair Trade Practices Regulations and Listing Obligations and Disclosure Requirements Regulations. The action relates to alleged financial fraud and fund diversion. The company clarifies that no penalty or direction has been issued against Seya Industries itself, only against the individuals. The company is currently under the Corporate Insolvency Resolution Process (CIRP) with an Interim Resolution Professional. Management states there is no impact on financial, operational, or other activities of the company from this order.
No direct financial penalty on the company, but the SEBI order targets its top leadership, which adds to existing governance and insolvency concerns. This is likely to weigh negatively on investor confidence given the company's already distressed status under CIRP.