Halonix, the Indian car lightings maker that counts Actis as its biggest investor, is said to be facing a shareholder revolt following claims the business has violated India’s Foreign Exchange Management Act (Fema).
The Securities Exchange Board of India (Sebi) and Enforcement Directorate are reported to be looking into allegations Halonix violated Fema and misled public shareholders, according a report in the Times of India.
Unifi Capital, Halonix’s largest shareholder after Actis with a five per cent stake, is understood to have complained to Sebi chairman U K Sinha that disclosures “manipulated public investors and eroded their wealth,” the report said.
Shareholders are also reported to have written to ED chief Rajan Katoch in July expressing fears Halonix was writing off foreign exchange earnings to hide undisclosed liabilities in its European operations.
The complaint alleges Halonix failed to act in accordance with public disclosures, which were presented as fait accompli to its shareholders and influenced the stock price, the report added.
“While Actis is a majority shareholder, Halonix is a board managed company with independent directors of repute,” Actis South Asia head J M Trivedi told the newspaper.
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