Markets regulator SEBI has announced a two-year ban on Man Industries (India) Ltd and three of its senior executives from accessing the securities markets due to alleged financial misstatements. Each has also been penalized with a fine of ₹25 lakh. The executives affected include Ramesh Mansukhani, Chairman; Nikhil Mansukhani, Executive Director; and Ashok Gupta, former Executive Director and current Chief Financial Officer (CFO), as per SEBI’s order.
In the ruling, SEBI determined that the financial statements of Man Industries for the fiscal years 2015-16 to 2020-21 were “deliberately misstated.” The regulator stated that these misrepresentations and omissions were part of a scheme that deprived investors of an accurate understanding of the company’s financial condition.
SEBI pointed out that MSPL, a wholly-owned subsidiary, had been excluded from consolidation after the fiscal year 2014-15 without justification. This exclusion contributed to the suppression of group-level losses and liabilities, while simultaneously inflating the profits of Man Industries.
The SEBI Chief General Manager, N. Murugan, stated, “I therefore conclude that the financial statements of MIIL for FY 2015-16 to FY 2020-21 were misrepresented as part of an artifice, the effect of which was to present to investors a false picture of profitability, liquidity, and exposure to group risks. Such conduct constitutes a fraudulent and unfair practice by Noticees.”
These actions violated the provisions of the Prohibition of Fraudulent and Unfair Trade Practice (PFUTP) regulations, leading SEBI to impose both the market access ban and financial penalties on the involved parties.
The enforcement action stemmed from a complaint received by SEBI regarding fund diversion to subsidiaries and the failure to consolidate financial results in order to conceal losses. SEBI subsequently initiated an inquiry that included a forensic audit of MIIL’s financial practices covering FY 2014-15 to FY 2020-21. A forensic auditor was appointed on November 22, 2021, to investigate the company’s financial records in detail.
This order was published on September 30, 2025.
