Sebi refuses to lift market ban on Gautam Thapar, others

New Delhi: Regulator Sebi on Wednesday refused to lift the capital market ban imposed on fraud-hit CG Power and Industrial Solutions' ex-chairman Gautam Thapar and three other former officials in a case related to diversion of funds.

Besides Thapar, the other officials banned are CG Power's former Chief Financial Officer V R Venkatesh and former directors Madhav Acharya and B Hariharan.

However, they have been allowed to liquidate up to 25 per cent of the value of the securities held by them.

The order comes following a SAT directive in February which granted Sebi time till March 10 to pass the final order in the matter.

The officials had moved the tribunal following an interim order passed by Sebi in September 2019, which had barred them from the capital markets for "serious" misstatement of accounts as well as diversion of funds. Besides, it had ordered forensic audit of the company.

In its 174-page confirmatory order on Wednesday, Sebi barred Thapar, Venkatesh, Acharya and Hariharan from buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly, till further orders.

These four former officials "shall however, be permitted to liquidate up to 25 per cent of the value of the securities held by them as on the date of the interim order".

The relaxation has been given following a plea by them. Most of the officials in their applications to the regulator explained the hardship they are facing in their personal lives.

Further, they have been restrained from being associated with any intermediary registered with Sebi or any listed entity till further orders.