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Setback for Sun Pharma as Sebi finds violation of listing and disclosure norms

Updated : February 22, 2020 04:08 PM IST

According to media reports, the Securities and Exchange Board of India (Sebi) has found out violation of listing and disclosure norms by Sun Pharmaceutical Industries as the drug major did not reveal the related-party transaction with Aditya Medisales.

The market regulator said the reason for the violation of the listing and disclosure norms was not revealing the related party transaction with Aditya Medisales, which is basically an entity which had owned by Sun Pharma's promoters and distributes its formulations in India.

As of now, there are no direct comments from Sun Pharma.

Last year, Sun had announced a slew of measures, including replacement of its domestic formulations distributor Aditya Medisales and change of auditors for its arms, in the wake of a second whistleblower complaint that raised corporate governance issues.

Aditya Medisales is reported to have had transactions of over Rs 5,800 crore with a real estate firm, Suraksha Realty that is promoted by Sudhir Valia, who is the brother-in-law of Sun Pharma promoter Dilip Sanghvi. Valia is also an executive director in the pharmaceutical major.

In December last year, markets regulator Securities and Exchange Board of India (SEBI) began to examine the whistleblower complaint against Shanghvi-led Sun Pharmaceutical Industries.

In November 2018, a whistleblower had approached SEBI with a document alleging various irregularities by the company, its promoter Shanghvi and others.

Shangvi earlier denied receiving any query from the markets regulator regarding the whistleblower complaint.
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