Sebi today refused to lift the ban on Chairman of outsourcing firm Zylog Systems (ZSL) and five other entities from accessing the securities market and said the prohibition for violating capital market norms will continue till further orders.
Among the barred entities are Zylog's promoter Chairman and Chief Executive Sudarshan Venkatraman, Managing Director and Chief Operating Officer Ramanujam Sesharathnam and former chief financial officer S P Srihari.
Besides, the company's Whole-time Director Parthasarathy Srikanth, his wife Srikanth Sripriya and Sthithi Insurance Services -- a promoter entity of Zylog and owned by Venkatraman and Sesharathnam -- have also been restrained from the capital market.
The regulator, in its order in June 2013, had barred these entities after prima-facie finding them guilty of violating various regulations, including provisions of PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) and shareholding disclosure norms.
Sebi had cited many factors, including repeated instances of concealment of information, dissemination of false and misleading information by promoters and non-compliance with existing norms for the restraining order.
In an order passed today, the Securities and Exchange Board of India (Sebi) has confirmed the interim oder dated June 13, 2013.
The directions issued vide the interim order "shall continue to be in force till further directions", it added.
A Sebi probe prima-facie found "the promoters of ZSL, along with Sripriya acting in concert acquired shares of the company beyond the threshold stipulated... Under takeovers without complying with the obligation of making open offer".
In addition, ZSL and its promoters made misleading disclosures, promoter utilised company funds to deal in shares of ZSL and dependant (spouse) of director used the firm's fund to deal in its shares, the probe found out.
