News

SEBI Prohibits OCAL and Its Promoters from Securities Markets Amid Fund Diversion Allegations.

Banking & Finance | Dated: 09 Nov 2024

The Securities and Exchange Board of India (SEBI) has barred Onelife Capital Advisors Limited (OCAL) and its promoters, Pandoo Naig and Prabhakara Naig, from participating in securities markets until further notice due to alleged fund diversion and misrepresentation of the company's financial records.

🎯 Key Highlights:

- SEBI has prohibited the Naigs from serving as directors or key managerial personnel in any listed company that plans to raise funds from the public or any SEBI-registered intermediary until further notice.
- OCAL's methods involve various regulatory violations, including hidden transactions among related parties without proper disclosures or approvals, diversion of funds as loans to related parties, and failures in corporate governance.

💡 Other Important Facts:

(i) According to SEBI, the questionable activities of OCAL and its promoters were overlooked or even approved by supposed watchdogs both within and outside the company, including compliance officers, audit committee members, and statutory auditors.
(ii) The order followed an October 2022 complaint to SEBI about alleged fund diversion and financial misrepresentation by FCHL and OCAL. NSE also investigated OCAL based on their internal alerts.
(iii) OCAL and the Naigs are promoters of the Bombay Stock Exchange (BSE) listed entity Family Care Hospitals Limited (FCHL).

📚 Test Your Knowledge:

Which regulatory body recently prohibited OCAL and its promoters from accessing the securities markets?

Correct Answer: SEBI

🚀 Quick Recap:

About SEBI

Chairperson: Madhabi Puri Buch
Headquarter : Mumbai