sebi:WTM/AB/CFID/CFID-SEC2/27715/2023-24
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Facts / Headnote
Ad-interim ex-parte order passed to protect interests of public shareholders and prevent further deterioration of funds/assets of Eros, pending completion of detailed investigation; directions to take effect immediately and remain in force until further orders.
Provisions invoked
- s. 19
- s. 12A
Regulations
- Reg. 3
- Reg. 3(b)
Parties
- Eros International Media Limited
- Eros Worldwide FZ LLC (EWW/Noticee 2)
- Eros Digital Private Ltd. (EDPL/Noticee 3)
- Sunil Arjan Lulla (Noticee 4)
- Pradeep Dwivedi (Noticee 5)
Holding
SEBI passed an ad-interim ex-parte order against Eros International Media Limited and its promoters/noticees, finding prima facie that the Company overstated its books of accounts through revenue from potentially bogus entities, round-tripped its own funds, and siphoned/diverted funds to connected parties of its promoters.
Full text
Interim Ex Parte Order in the matter of Eros International Media Limited Page 2 of 53 loans given by Eros mainly comprised of related party transactions, and the same had increased substantially in FY 2019-20. The PER observed that prima-facie these transactions indicated that the Company was engaging in financial mis-reporting/siphoning/diversion of funds.
Interim Ex Parte Order in the matter of Eros International Media Limited Page 3 of 53 4. As per the Annual Report for FY2019-20, the group structure of the Company was as follows:
Interim Ex Parte Order in the matter of Eros International Media Limited Page 4 of 53 Executive Vice Chairman & Managing Director of the Company, and Noticee 5 (Pradeep Dwivedi) is the Chief Executive Officer (“CEO”) of Eros.
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Source: SecMarx — sebi:WTM/AB/CFID/CFID-SEC2/27715/2023-24. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.