SEBI asks Prabhat Dairy to deposit Rs 1,292 cr in escrow account

New Delhi, Oct 21 : Finding Prabhat Dairy and its promoters to be non-cooperative in a forensic audit, SEBI has asked Prabhat Dairy to deposit within seven working days the amount of Rs 1,292.46 crore to an interest-bearing Special Escrow Account.
The subsequent operations in the Special Escrow Account shall be monitored by JM Financial as its manager till the completion of the forensic audit.
The promoters, Sarangdhar Ramchandra Nirmal and Vivek Sarangdhar Nirmal, shall be restrained from disposing, selling or alienating, in any other manner, their assets or divert funds.
The company and its officials have been directed to cooperate with the forensic auditor appointed as per the SEBI letter dated July 17, 2020 and shall furnish all information/documents to the forensic auditor/SEBI within seven working days. The Audit Committee of PDL is directed to ensure that all data /information may be provided to the forensic auditor/SEBI within seven working days.
A SEBI order on Tuesday found, “It is necessary to adopt some urgent measures to safeguard the interests of minority investors/shareholders of PDL and protect the integrity of the securities market by ensuring that the proceeds of the Transaction are secured for the benefit of its investors.” “However, having regard to the material available on record, the directions in these proceedings are limited to only PDL and its Promoters/Directors, viz. Sarangdhar Ramchandra Nirmal and Vivek Sarangdhar Nirmal as they have prima facie failed to cooperate with the forensic auditor appointed by SEBI and have not furnished the requisite information and documents which leaves an apprehension of fund diversion,” it said.