Now Reading: SEBI bars Varanium Cloud for 7 years, orders Rs 128.77 crore disgorgement
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SEBI bars Varanium Cloud for 7 years, orders Rs 128.77 crore disgorgement
SEBI bars Varanium Cloud for 7 years, orders Rs 128.77 crore disgorgement
The Securities and Exchange Board of India (Sebi) has barred Varanium Cloud Ltd and its promoter Harshawardhan Sabale from the securities market for seven years after finding fabricated data centres, manipulated financials…
The Securities and Exchange Board of India (Sebi) has barred Varanium Cloud Ltd and its promoter Harshawardhan Sabale from the securities market for seven years after finding fabricated data centres, manipulated financials and diversion of investor funds. Sebi ordered Sabale to disgorge Rs 128.77 crore in alleged unlawful gains, NDTV Profit reports. The regulator also directed the company to return Rs 62.51 crore diverted from IPO and rights issue proceeds, along with 12% interest.
Sebi's final order found that Varanium Cloud misrepresented its financial statements through fictitious sales and purchases, with transactions supported mainly by journal entries rather than adequate evidence. Livemint reports the regulator also took issue with a proposed Rs 2,683 crore acquisition of Fastway Transmissions that did not go through, calling it a ploy to mislead investors. The company's share price rose from Rs 131 at listing in September 2022 to Rs 1,526.15 in January 2023 before crashing to Rs 17.75 by May 2024.
Sebi imposed penalties totalling Rs 1.3 crore on Varanium Cloud, Rs 20.4 crore on Sabale, and fines on other entities including BM Traders proprietor Raj Jagtani (Rs 10.1 crore), Athos Capital Advisors and its director Jinesh Mehta (Rs 50 lakh each), and the IPO merchant banker First Overseas Capital Ltd (Rs 10 lakh). The regulator found that 47.03% of IPO proceeds were sent to entities with which Varanium Cloud had no business relationship.
Indian Opinion Analysis
Both NDTV Profit and Livemint report the Sebi order with straight factual framing and no editorial slant. The coverage is uniform: both lead with the seven-year ban and disgorgement amount, detail the fabricated data centres and fictitious transactions, and list penalties on all entities involved. Neither outlet omits the severity of the fraud or the regulator's findings. The implication is clear: Sebi is signalling tougher enforcement against IPO-related fraud, with this order joining a series of recent actions. The next step will be whether the penalised entities appeal to the Securities Appellate Tribunal.
Coverage: 2 sources, 2 neutral
Sources (2): ndtvprofit.com (neutral report), livemint.com (neutral report)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
