Mumbai: Markets regulator Sebi has directed brokers to square off all existing open positions in the equity derivatives segment they hold for Vijay Mallya and the six former officials of United Spirits who were banned from the market last week. The fresh directive by the capital market regulator has been made through an e-mail to stock exchanges yesterday.
"The trading members are advised to square off existing open positions in the futures and options segment, if any, for the persons/entities mentioned in the above order and also ensure that no fresh positions are created for the said persons/entities," an NSE circular said quoting the Sebi directive.
However, the regulator has not given them a time-line to do so. Sebi had last week through an interim order, barred Mallya and six former officials of USL from entering the market, after the CBI charge-sheeted them in a money laundering case involving a loan IDBI Bank.
The CBI also charge-sheeted and arrested eight IDBI Bank officials, including its former chairman Yogesh Aggrawal in the case for their role in bypassing lending norms to extend Mallya Rs 950 crore loan in 2010.
The six former officials of USL who were barred from the markets are Ashok Capoor as well as Sowmiyanarayanan, PA Murali, SN Prasad, Paramjit Singh Gill and Ainapur SR.
Sebi restrained Mallya and these six people 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.
Mallya and Capoor have been restrained from "holding position as directors or key managerial persons (KMPs) of any listed company".
The funds were diverted during the period between 2010 and 2013. As per a PwC report, the diverted amount was Rs 655.55 crore while an EY report estimated it at Rs 1,225.24 crore, as per the Sebi order.
