SEBI, which monitors every movement of the stock market, is angry with ‘Chandamama’ these days. No… No… This is not Chanda Mama, who has been a part of our childhood lullabies, but this is ‘Chandamama’, reading which many generations have spent their childhood. You caught it right… We are talking about the children’s magazine ‘Chandamama’, SEBI has barred three former top officers of Geodesic Ltd, the company that publishes this magazine, from trading in the stock market. Know what is the whole matter…
By the way, let us tell you that Chandamama India Limited, the publishing company of ‘Chandamama’, was a subsidiary company of Geodesic Limited.
money laundering case
Sebi has barred three former top executives of Geodesic Ltd, the publisher of children’s magazine Chandamama, from trading in the stock market for one year for misappropriation of funds, PTI reported. According to SEBI’s order, Kiran Kulkarni, who was the managing director of Geodesic, Pankaj Kumar, former chairman of the company, and Prashant Mulekar, who was the director of the company, will not be able to do any kind of transaction in the stock market for one year.
Investigation on the orders of the Bombay High Court
The Registrar of Companies of the Bombay High Court had sent a letter to SEBI in 2016. After this, SEBI started investigating this matter related to misappropriation of funds against the publishers of Chandamama. In this letter, SEBI was informed about the High Court’s order in the case of HDFC Bank Ltd. vs. Geodesic, and further directed SEBI as well as the Enforcement Directorate to take action against the directors of the firm.
SEBI begins scrutiny of Geodesic’s books to find possible violations of regulatory parameters. The investigation was carried out for the period April 2011 to March 2012.
What was the case against Geodesic?
SEBI passed a 56-page order on Monday against former executives of Geodesic. Investigation found that these people diverted the amount of $ 125 million raised from foreign investors in 2008 through Foreign Currency Convertible Bonds (FCCB). The amount was raised for the purpose of investing in other firms including wholly owned subsidiaries.
The company’s books of accounts for the period FY 2011-12 were full of misleading financial figures. It did not reflect the correct and actual figures regarding the financial position of the company.