Sebi Imposes ₹24-cr Fine on Singh Bros, 7 Others

Markets regulator Securities and Exchanges Board of India (Sebi) on Tuesday imposed penalties totaling ₹24 crore on nine entities, including businessmen Malvinder Mohan Singh and Shivinder Mohan Singh, in the Fortis Health care matter. In addition, the regulator has barred Singh brothers and other from the capital markets. The case relates to Singh brothers along with other entities diverting funds from Fortis Healthcare for the ultimate benefit of – RCH Holding – an entity indirectly owned and directly controlled by the erstwhile promoters. In its order Sebi noted that Singh brothers, RHC Holding, Malav Holding and Shivi Holdings played a key role in the diversion of funds in the garb of investment through inter-corporate deposits (ICDs) from Fortis Hospitals/Fortis Healthcare, as the funds from the listed company moved through various conduit entities. The funds were routed in a manner that benefited the promoters. Further, it said that these five entities, Fortis Hospitals/Fortis Healthcare, acted in a fraudulent and deceptive manner which led to misuse and/or diversion of funds to the tune of ₹397.12 crore the ultimate benefit of RHC Holding.

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