The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs. 50 lakh on Sunil Lulla, former managing director of Eros International Media Ltd., for non-compliance with its orders. In June 2023, SEBI had barred Lulla from securities markets and from holding key positions in listed companies due to alleged fund diversion. Despite the order, Lulla failed to resign from his position at Eros International until July 2024, a delay of over 13 months.
SEBI deemed this a serious violation of its orders and a demonstration of complete disregard for the regulator. The market watchdog emphasised the importance of compliance with its directives, especially for individuals in key positions. This penalty comes on the heels of a Rs. 2 crore fine imposed on 17 entities for obstructing SEBI’s investigation into financial irregularities at Eros International. The regulator continues its scrutiny of the company and its related entities.