Markets regulator Sebi has barred EKI Energy Services Ltd and its Managing Director Manish Kumar Dabkara from the securities market for two months and 12 months, respectively, for misrepresenting financial statements of the carbon credits trading firm and diverting funds.
Also, the regulator has restrained the company's former Chief Financial Officer (CFO) Mohit Kumar Agarwal from the securities market for eight months, while whole-time directors Naveen Sharma and Sonali Sheikh have been prohibited for five months and one month, respectively.
Besides, Sebi has imposed monetary penalties totalling Rs 88 lakh on the company and other individuals for various violations of securities market regulations.
Further, the markets regulator directed Dabkara to take immediate steps to recoup the amount diverted from EKI Energy Services.
In its 94-page final order, Sebi noted that EKI had prematurely recognised revenue aggregating Rs 197.04 crore during the first three quarters of FY23, thereby misrepresenting its financial performance to investors.