A major action was taken against the fugitive Vijay Mallya, now a ban has been imposed in this matter

The government has taken a big action against fugitive Vijay Mallya. This action has been taken by the stock market regulator SEBI. Apart from barring fugitive businessman Vijay Mallya from the securities market, SEBI also barred him from joining any nested company for three years.

SEBI has taken action with UBS AG in connection with a case of sending money to the Indian securities market using foreign bank accounts. The Indian government is seeking the extradition of Vijay Mallya from Britain, who is facing fraud charges with defunct Kingfisher Airlines. Mallya has been living in Britain since March 2016.

What was this game?

The Securities and Exchange Board of India SEBI, in its investigation for the period January 2006 to March 2008, found that Mallya arranged for foreign institutional investors to secretly trade shares in his group companies - Herbertsons Ltd and United Spirits Ltd.

Investors (FIIs) use Matterhorn Ventures. For this, money was sent through various foreign accounts. Mallya, a former liquor executive, used Matterhorn Ventures to invest money in the Indian securities market through various accounts with UBS AG. He used various foreign entities to hide his true identity.

SEBI's 37-page order

The Sebi order said that Matterhorn Ventures was wrongly listed as a non-promoter public shareholder in Herbertsons when its 9.98 per cent shareholding was in the promoter category.

Sebi Chief General Manager Anita Anup, in her 37-page order, said in the case that Mallya used the FII route for trading in the Indian securities market by concealing his identity and ignoring regulatory norms for his foreign related companies.

He thus planned to indirectly trade in shares of his own group of companies through multi-level transactions. He said that this action by Mallya was not only fraudulent and misleading but also a threat to the integrity of the securities market. In such a situation, SEBI has stopped Mallya from entering the securities market. He was barred from joining any listed firm for three years.