Has SEBI dealt Nusli Wadia his biggest blow yet?
Called out for misrepresenting financials and resorting to practices that harmed investors, the Bombay Dyeing chairman may still find a loophole to exploit.
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Editor's note: The Securities and Exchange Board of India has found that Nusli Wadia’s flagship firm, Bombay Dyeing and Manufacturing Co. Ltd, misreported revenue and profits pertaining to its real estate business for seven years. In an order dated 21 October, the market regulator slapped a fine of Rs 4 crore on Wadia and restrained him from accessing the capital market for two years. It also imposed fines on his two sons, Jehangir and Ness, along with several executives of his group companies and imposed restrictions on them too. The SEBI order is significant for two reasons. One, this may well be the harshest stricture passed against 78-year-old Wadia, a doughty entrepreneur who has, over the past 50 years, survived Reliance Industries founder Dhirubhai Ambani’s bid to push competitors out of business and fought many a corporate battle. Two, though it seems to have gone largely unnoticed, it would count as the first “high-profile” order by SEBI against a businessman after Madhabi Puri Buch assumed charge as chairperson in February. The order states that an investigation had found Bombay Dyeing indulging in …
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