India’s market regulator, the Securities and Exchange Board of India (SEBI), has extended the ban on fugitive businessman Vijay Mallya, preventing him from accessing the securities market for an additional three years. This decision follows an investigation revealing that Mallya used complex financial maneuvers to funnel funds into the Indian securities market, masking his identity and engaging in fraudulent activities.
According to Anitha Anoop, Chief General Manager at SEBI, Mallya, who previously led United Breweries and is a major shareholder in United Spirits Ltd (USL), orchestrated a scheme to indirectly trade shares of his own companies. The transactions involved bank accounts at UBS AG London and were executed through the Foreign Institutional Investment (FII) route.
SEBI’s order states, “Such actions are fraudulent, deceptive, and compromise the integrity of the securities market.”
This latest sanction builds upon a previous SEBI order from June 1, 2018, which also barred Mallya from the securities market for three years due to similar manipulative activities involving USL shares. The renewed ban reflects Mallya’s continued involvement in unfair trade practices, violating securities laws.
The investigation, initiated by SEBI based on information from the Financial Services Authority (FSA), uncovered that Mallya used Matterhorn Ventures, a sub-account under the FII Matterhorn Advisory Singapore Pte Ltd, to indirectly trade shares of his group companies, including Herbertsons and USL, in India. The funds were channeled through multiple beneficiary accounts with UBS before being invested in the Indian securities market.
