Sebi has banned Securekloud Technologies Ltd and three individuals from the securities market for allegedly manipulating financial statements and misappropriating company funds. Suresh Venkatachari, RS Ramani and Gurumurthi Jayaraman have also been restricted from engaging with any Sebi-registered intermediary until further orders.

In addition, according to the 76-page order passed by Sebi, they must not serve as a director or principal officer of any public company or the promoter of any public company that intends to raise funds from the public. Sebi has launched an investigation into certain complaints alleging breaches by the company’s promoters and management and the resignations of its statutory auditors Deloitte Haskins and Sells, citing various corporate governance lapses.
Regulators investigated the company’s affairs between 2017-18 and 2020-21, finding they manipulated financial statements.

Another Rs 3.83 crore was allegedly siphoned off. According to the order, Jayaraman, the former chairman of the audit committee, was aware of all misconduct at the company and did not perform his duties independently. It noted that he violated disclosure norms by aiding and abetting all company management misconduct.

Sebi observed that the company’s shareholding of promoters and promoter groups decreased from 63.41% on March 31, 2017, to 38.20% on March 31, 2019. According to the regulator, Venkatachari and Ramani traded their shares at very high prices. They made huge profits for their gain at the expense of unwitting investors who appear to have been exposed to showing false income and profitability. Added published reports. Manipulating financial statements to induce purchases of company stock.

After preliminary observation, the notice mainly violated various provisions of the Securities Law, manipulating STL’s finances, taking away company funds, not disclosing relevant information, making false statements and statements, etc., for personal gain,” the order said. While passing instructions to the company and the trio, Sebi also asked them to explain why there should not be an investigation into their alleged breach.