The Securities and Exchange Board of India (Sebi) on Tuesday barred Varanium Cloud Ltd (VCL) and its promoter Harshawardhan Sabale from the securities market for seven years. Sebi also ordered Sabale to disgorge ₹128.77 crore in alleged unlawful gains, while directing VCL to return ₹62.51 crore that was found diverted from proceeds, according to livemint.com.
The regulator's action follows findings that VCL had misrepresented its financial statements and disclosures, including through fictitious sales and purchases. Sebi's investigation uncovered that the company and its promoter engaged in manipulative practices to inflate financial performance. The seven-year ban restricts both the company and Sabale from participating in securities market activities, emphasizing the regulator's strict stance on market integrity.
This enforcement highlights Sebi's ongoing efforts to clamp down on corporate fraud and protect investor interests in India. The ₹128.77 crore disgorgement is among the larger penalties imposed recently, underscoring the seriousness of financial misrepresentation. Comparable actions by Sebi in recent years have targeted companies involved in similar malpractices, reinforcing regulatory oversight in the Indian capital markets.
Varanium Cloud Ltd and Harshawardhan Sabale have been barred from the securities market for seven years, with Sabale ordered to return ₹128.77 crore. The regulator's order was issued on August 25, 2026, marking a significant enforcement step against financial misconduct in the sector.