The Securities and Exchange Board of India (SEBI) has imposed a fine of Rs 50 lakh on Sunil Arjan Lulla, promoter and former managing director of Eros International Media. This fine has been imposed in a case related to violation of regulatory rules. Earlier, in an interim order in June 2023, SEBI had banned five entities including Eros International, Lula from the securities market on suspicion of misappropriation of funds.
What is the matter?
The market regulator had also barred Sunil Lulla from holding the position of director or key managerial employee in Eros or its subsidiaries or any SEBI-registered listed company until further orders. Subsequently, Sunil Lulla appealed against SEBI’s interim order in the Securities Appellate Tribunal (SAT). However, the tribunal upheld the regulator’s order in August 2023. The regulator confirmed the ban against him in October 2023.
The market regulator found that Sunil Lula failed to comply with SEBI’s directions and did not resign from the post of director of Eros International Media, and also allegedly did not comply with the regulator’s order for judicial proceedings.
Show cause notice to Sunil Lula
Subsequently, the regulator issued a show cause notice to Sunil Lula on 22 April 2024. SEBI said Sunil Lula’s conduct showed complete disregard for the regulator, which is completely inappropriate. SEBI said in the order on October 30 that it was found that they did not comply with the regulator’s order from June 2023 to July 2024.
According to SEBI, if a person violates the instructions given by the securities market regulator while holding his post, then it should be taken more seriously. His (Sunil Lulla) actions showed complete disregard for the regulator, which is completely unbecoming of a person in his position.
SEBI on October 29 imposed a total fine of Rs 2 crore on 17 entities for not complying with its investigation and failing to provide complete and timely information in the case of Eros International Media Ltd. The regulator imposed a fine of Rs 12 lakh each on 17 entities. The case pertains to alleged financial irregularities and mis-management relating to agreements between Eros International Media Limited (EIML) and Spicy Entertainment and Media Limited (SEML) as well as other related entities.
