SEBI directs Binny to return ₹712 crore of diverted funds within 3 months

Binny Ltd, a textile manufacturer, and its top executives have come under scrutiny from the Securities and Exchange Board of India (SEBI) for diversion of funds and other violations. SEBI has ordered the company to return ₹712 crore to its accounts within three months and imposed penalties totaling ₹27.5 crore on the company and its key officials.BL had diverted ₹ 712.64 Crores (₹329.29 Crores to various vendors and ₹ 383.35 Crores to MBDL).

The regulator found that Binny Ltd had misrepresented its financial statements and siphoned off funds, as per the order. SEBI directed the company, its executive directors, independent directors, and Chief Financial Officer(s) to bring back the diverted funds.

The order bars the company and its top executives from accessing the capital market for a certain period. SEBI's investigation revealed that Binny Ltd had violated various provisions of the SEBI Act, 1992, and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.

This case highlights SEBI's commitment to cracking down on corporate governance issues and ensuring transparency in the Indian securities market. The regulator's actions send a strong message to companies and their management to adhere to regulations and maintain the integrity of financial statements.

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