Man Industries nosedives ~16% as SEBI bans Chairman, 2 top executives

30 Sep 2025 , 02:30 PM

Man Industries (India) Ltd. shares tanked as much as 16% to an intraday low of ₹340.90 on the BSE on Tuesday, September 30. This stock movement came after the Securities and Exchange Board of India (SEBI) restricted the company and three of its senior executives from accessing the securities market for two years.

At around 1.40 PM, Man Industries was trading 10.97% lower at ₹362.10, against the previous close of ₹406.70 on NSE. 

This action was taken by SEBI after receiving allegations of fund diversion. Those named in the order include Chairman Ramesh Mansukhani, Managing Director Nikhil Mansukhani, and former Chief Financial Officer Ashok Gupta.

According to the details shared by SEBI, the company did not consolidate its subsidiary Merino Shelters (MSPL) in its accounts between FY2015 and FY2021. Additionally, the company misreported related-party transactions, and is engaged in round-tripping of funds to conceal its true financial condition.

The SEBI order also stated several non-compliances by the company related to loans and advances. 

For the year ended March 31, 2022, the company did not recognize interest income on loans given to MSPL, thereby violating Section 186(7) of the Companies Act, 2013. Also, the company converted a loan worth ₹564.14 Crore granted to capital advance without any approval from the Audit Committee or disclosure as a Related Party Transaction.

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