Market regulator SEBI banned Rana Sugars, its promoters, and officials from the securities market for 2 years on Tuesday. Additionally, they imposed a fine of ₹63 crore for fund manipulation.
SEBI has fined Rana Sugars, its promoters, officials, and other involved parties with penalties ranging from ₹3 crore to ₹7 crore.
Ban on Taking Significant Positions
The market regulator has also prohibited the company’s promoter and MD, Inder Pratap Singh Rana, Chairman Ranjit Singh Rana, Veer Pratap Rana, Gurjeet Singh Rana, Karan Pratap Singh Rana, Rajbans Kaur, Preet Inder Singh Rana, and Sukhjinder Kaur from holding any director-level or other management-level positions in any listed company for 2 years.
It appears that all the accused benefitted from the fund manipulation and violated the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations. CFO Manoj Gupta is also among those who violated these regulations. He signed and certified the manipulated financial details of RASL.
– G Ramar, Chief General Manager, SEBI (in the final order)
Failure in Disclosure
The investigation revealed that Rana Sugars Limited failed to disclose Lakshmiji Sugars Mills Company as an affiliated party in the financial year 2016-17. Additionally, the company also failed to disclose FTPL, CAPL, JABPL, RJPL, and RGSPL as affiliated parties.
According to SEBI, Inder Pratap, Ranjit, and Veer Pratap Singh Rana were responsible for the affairs of Rana Sugars. Therefore, Rana Sugars and these individuals have violated the LoDR (Listing Obligations and Disclosure Requirements) regulations.
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