Mishtann Foods was prohibited by the market watchdog on Thursday from raising any public funds for seven years due to alleged serious financial statement fraud. In addition, the managing director and a number of other directors are not allowed to access the securities market until additional directives are given. The Securities and Exchange Board of India (Sebi) noted that nearly all of Mishtann Foods Ltd.’s (MFL) sales and purchases since FY20 were first determined to be fraudulent.
The corporation was charged by the regulatory agency with serious financial mismanagement, fraudulent activities, and a lack of corporate governance. Following an inquiry by the Securities and Exchange Board of India (Sebi), it was discovered that Mishtann Foods had engaged in a number of questionable activities, such as circular trading with fake companies that were under the control of the company’s directors and their associates.
The company’s financial success was exaggerated by these illicit activities, deceiving regulators and investors. The corporation has been ordered by the regulator to refund about Rs 100 crore that was purportedly embezzled through these transactions.
Mishtann Foods Share Price Today
The share price of Mishtann Foods dropped 19.97% to 12.42 a share, and as of 09:53 a.m., it is still trapped in the 20% lower circuit. In contrast, the BSE Sensex saw an advance of 0.05%. On an annual basis, it has decreased by 25%. 9.7 times the 30-day average was the total traded volume for the day. It was 34.34 on the relative strength index.
SEBI Action Against Mishtann Foods
After capital market regulator SEBI banned five companies from the securities markets, including Mishtann Foods and its promoter and CMD Hiteshkumar Gaurishankar Patel, the stock plummeted. Due to alleged financial mismanagement, fraudulent transactions, and corporate governance violations, they have been prohibited from accessing the capital market until additional rulings are issued.
Additionally, SEBI ordered Mishtann Foods to return around Rs 100 crore, which the business allegedly embezzled through questionable dealings with relatives.
