Bombay Dyeing and Manufacturing Company has been barred by the country’s capital market regulator from the securities markets for two years. 

The company, which is a part of the Wadia Group and is engaged in the business of real estate, polyester and textiles, is among 10 entities facing penalties for allegedly misrepresenting financial statements. 

The Securities and Exchange Board of India (SEBI) issued a statement late on Friday, barring Bombay Dyeing and its “promoters” (owners) – Nusli N Wadia and his sons, Ness and Jehangir – from the securities markets for up to two years. 

Also named and penalised are Scal Services, a Wadia Group company, its former directors D S Gagrat, N H Datanwala, Shailesh Karnik and R Chandrasekharan, and Durgesh Mehta, who was joint managing director and chief financial officer of Bombay Dyeing. 

The Wadia Group is one of the oldest conglomerates in India with presence in several diversified industries, including consumer goods, real estate, civil aviation, textiles, chemicals and food processing. 

Four companies in the Wadia Group, including Bombay Dyeing, are listed on stock exchanges. 

SEBI has said it has imposed fines totalling Rs 15.75 crore on the named parties for “being involved in a fraudulent scheme of misrepresenting the company’s financial statements”. 

The regulator has added that it has conducted a detailed investigation into the affairs of Bombay Dyeing between 2011-2012 and 2018-2019.