Eros International shares plunge 20% as Sebi bars group entities, MD

By India Today Business Desk: Eros International Media Ltd witnessed a significant decline in its shares on Friday, plunging by as much as 19.92 per cent – marking its largest percentage loss in four years.

The sharp drop came after market regulator Securities and Exchange Board of India (Sebi) took action against the company and its management due to accounting irregularities.

The Securities and Exchange Board of India (SEBI) barred Sunil Arjan Lulla, the managing director of Eros International, along with three entities associated with the company, from participating in the securities market.

This move by SEBI follows its investigation into accounting discrepancies at Eros International.

The regulatory action has raised concerns among investors, resulting in a sharp sell-off in the company’s shares.

The exact nature of the irregularities and the implications for Eros International has been stated by Sebi in its interim order.

In an interim order, Sebi said it had found evidence that the books of accounts of the company were “overstated and do not present a true and fair picture of the financial health of the Company.”

It has barred Eros International Media Ltd, Eros Worldwide and Eros Digital from the securities market until further orders.

In an exchange filing, Eros International Media said it was in the process of seeking legal advice in the matter.

Eros International is a prominent player in the Indian media and entertainment industry, involved in film production, distribution, and exhibition. The company’s recent setback raises concerns about its corporate governance practices and financial integrity.

Going forward, investors and stakeholders are likely to closely monitor how Eros International addresses the allegations and rectifies the irregularities.