Sebi Bars Former CG Power Chairman Gautam Thapar From Accessing Securities Market

Days after the revelation of fraud at CG Power, market regulator Sebi on Tuesday restrained the company's former Chairman Gautam Thapar and some other board members from accessing the securities market and ordered the appointment of an independent auditor for conducting a detailed forensic audit from 2015-16 onwards.

Along with Gautam Thapar, Executive Director Madhav Acharya, VR Venkatesh, and non-excutive Director B Hariharan were also named in the order.

The Security and Exchange Board of India (Sebi) said that in "order to protect the interest of the investors and the integrity of the securities market" it bars "Gautam Thapar, CFO VR Venkatesh, Madhav Acharya and B Hariharan are restrained from accessing the securities market."

Whole time Sebi member, G Mahalingam said: "I note that an examination of the Preliminary Investigation Report along with a consideration of the Audit Report prima facie indicate a serious mis-statement of accounts and diversion of funds from a listed Company or its subsidiaries."

"Accordingly, I find that: I Gautam Thapar, VR Venkatesh, Madhav Acharya, B Hariharan along with the Promoter Company and entities connected with the Company, viz. Avantha Holdings Ltd, Acton Global Private Ltd and Solaris Industrial Chemicals Ltd have prima facie violated Sections 12A(a), (b) and (c) of the Sebi."

The board members are "prohibited from buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly, till further orders".