Omaxe Faces Market Ban: Misrepresentation Scandal Unveiled

Realty firm Omaxe and several key personnel were barred from the securities market by SEBI for two years due to misrepresentation in financial statements. This decision impacted the company's share prices, and the company plans to challenge the order. SEBI also fined multiple entities for involvement in fraudulent activities.

Realty firm Omaxe and several key personnel, including Chairman Rohtas Goel and Managing Director Mohit Goel, have been barred from the securities market for two years by SEBI. The market regulator's decision follows allegations of financial misrepresentation in the company's statements, which led to a sharp decline in its share prices.

On Wednesday, Omaxe's stock plummeted nearly 5% on both the BSE and NSE, hitting their respective lower circuit limits. In response, an Omaxe spokesperson stated that the company has not officially received the SEBI order yet and will consider appropriate legal actions upon verification.

SEBI's 126-page order highlights the misrepresentation of financial data from 2018 to 2021, involving revenue, debtors, advances, and expenses. Additionally, it restrains five other individuals from holding any directorial or managerial positions in listed companies for two years and levies fines totaling Rs 47 lakh on multiple entities for fraudulent activities.

(With inputs from agencies.)