Sebi to probe Fortis deals, asks company to provide information by Feb 26

Replying to notices, Fortis Healthcare said its wholly-owned arm Fortis Hospitals had deployed funds to the tune of Rs 4.73 billion as secured short-term investments to group firms of its promoters

Markets regulator Sebi has initiated investigation in the Fortis Healthcare matter. The hospital chain has landed in a controversy over alleged regulatory lapses in transfer of funds to some promoter-linked firms. Sebi has asked the company to furnish the required information by February 26. The company has received a communication from the Securities and Exchange Board of India (Sebi) dated February 16, confirming that an investigation has been instituted in the matter of Fortis Healthcare, according to a regulatory filing by the company to stock exchanges on Saturday. Sebi has asked to furnish information and documents as mentioned therein by February 26, 2018, it said.

 

“The company is in process of collating the said information and will be sharing the same with Sebi in due course. The financial implication, compensation, penalty and quantum of claims has not been referred in the aforesaid letter and hence cannot be ascertained,” it said. Fortis Healthcare was issued notices by the stock exchanges yesterday following a media report claiming that the company’s promoters, the Singh bothers, took at least $78 million (about Rs 500 crore at current exchange rate) out of the publicly-traded hospital company they control without board approval about a year ago. Replying to the notices, Fortis Healthcare said its wholly-owned arm Fortis Hospitals had deployed funds to the tune of Rs 4.73 billion as secured short-term investments to group firms of its promoters. 

Individually, Malvinder Mohan Singh and Shivinder Mohan Singh held 11,508 shares each in Fortis Healthcare Ltd as on December 31, 2017 out of total 51,86,17,631 shares of the company.

However, the total promoter group holding through different entities is 34.43 per cent.