Sebi probe finds violation of listing and disclosure norms by Sun Pharma

Allegations of fund diversion not confirmed

The Securities and Exchange Board of India (Sebi) has found that Sun Pharmaceuticals had violated its listing and disclosure norms by not revealing the related-party transaction with Aditya Medisales (AML), an entity owned by the drugmaker’s promoters that distributed its formulation in India. 

The probe, however, did not confirm the alleged misappropriation of funds to the tune of Rs 42,000 crore, said two people privy to the development. 

According to them, the Sebi's investigation department in its findings has recommended adjudication proceedings against the pharma major under Section 15 of the Sebi Act, which entails financial penalty if found guilty. 

The Sebi's investigation