Sebi's order comes close on the heels of Central Bureau of Investigation naming Mallya, Kingfisher Airlines and nine others, in the charge sheet related to the 2015 loan default case.
Cracking the whip, market regulator Sebi on Wednesday barred beleaguered businessman Vijay Mallya and six others from the securities market in a case related to alleged fund diversions from the United Spirits Ltd.
Besides, Mallya and former United Spirits' official Ashok Capoor have been restrained from "holding position as directors or key managerial persons (KMPs) of any listed company".
In an order, Sebi has restrained Mallya and six others from the securities market and also from "buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly" till further directions.
The six others are: Ashok Capoor, P A Murali, Sowmiyanarayanan, S N Prasad, Paramjit Singh Gill and Ainapur S R.
Sebi has been looking into the matter pertaining to alleged fund diversions and improper transactions at USL. Mallya resigned as director and chairman of USL in March 2016.
Sebi's order also comes close on the heels of Central Bureau of Investigation naming Mallya, Kingfisher Airlines and nine others, in the charge sheet related to the 2015 loan default case.
In a 32-page order, Sebi whole time member S Raman said the alleged prima facie violations observed in the case are serious and have larger implications on the safety and integrity of the securities market.
"Investors might have based their investment decisions on the manipulated books of accounts prepared and presented by these persons.
"It would therefore not be in the interest of the securities market and the interest of investors to allow persons of such doubtful demeanour to continue to act as KMPs in the company or in other listed companies or allow them to deal in the securities market," he said.
According to him, pending investigations, effective preventive and remedial actions need to be taken.
Photograph: Reuters