SEBI Initiates Action Against Bharat Global Developers For Violating Normsacc

SEBI Initiates Action Against Bharat Global Developers For Violating Norms

The company was accused of creating a misleading narrative about its business in design, engineering and construction

The Securities and Exchange Board of India (SEBI) has taken action against Bharat Global Developers Limited (BGDL) for making fake disclosures, carrying out preferential allotment of shares and other violations.

The directions were issued to the company in December last and the market regulator extended its investigation timeline until June 30 for further scrutiny.

SEBI stated that the company created a misleading narrative about its business in design, engineering, and construction to attract investors.

Its initial probe revealed that Bharat Global falsely claimed receiving orders from well-known companies, including McCain India’s entity Reliance Industries, UPL Agro and Tata Agro Consumer Products.

However, during the investigation, it was observed that the companies never placed orders. Bharat Global fabricated the names to resemble the well-established firms.

SEBI has prohibited Bharat Global from buying, selling, or dealing in the securities market. The company and its officials are also barred from associating with SEBI-registered intermediaries or listed companies.