Eros International shares tumble 20% after SEBI barred it

shares Eros International Media Limited It fell sharply by about 20 percent on the Friday after that SEBI ban the media and entertainment companythe promoters, MD Sunil Arjan Lulla and CEO Pradeep Kumar Dwivedi of the stock exchanges in a case related to the possible transfer of funds.

The stock fell 19.96 percent to Rs 21.08 on BSE.

On the NSE, shares of the company fell 19.92 percent to INR 21.10 after a weak opening.

In addition, Lulla and Dwivedi are prohibited from serving as a director or key management employee of any listed company, including Eros International or its subsidiaries until further orders, according to SEBI’s temporary order Thursday.

Apart from Eros International and its senior executives, the two promoting entities Eros Worldwide FZ LLC and Eros Digital Private Ltd have been restricted by the markets regulator.

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Furthermore, the regulator directed BSE to appoint a forensic auditor to examine the books of accounts of three BSE-listed companies – Thinkink Picturez Ltd, Mediaone Global Entertainment Ltd and Spicy Entertainment and Media Ltd – who first acted as conduits in the alleged transfer of funds by Eros.

The forensic auditor will submit the report to the exchange within three months.

In its 53-page ranking, SEBI found, prima facie, the company’s books of accounts to be overstated and not to provide a true and fair picture of its financial health.

“Transactions between ‘Advanced Content Entities’ and ‘Trade Receivables Entities,’ increase the possibility that Eros International will trade funds as amounts transferred as content advances are subsequently recognized as revenue by channeling it through Trade Receivables entities,” SEBI said.