The Securities and Exchange Board of India (Sebi) has barred Eros International Media Ltd, its promoters, managing director Sunil Arjan Lulla, and CEO Pradeep Kumar Dwivedi from the securities markets for alleged diversion of funds and misrepresentation of its numbers.

Handing down an ex-parte interim order, Sebi’s whole-time member Ashwini Bhatia restrained Lulla from holding the position of a director or a key managerial personnel in any listed company, including Eros or its subsidiaries, until further orders.

Dwivedi has been barred from holding the position of director or key managerial personnel in any listed company other than Eros or any Sebi registered intermediary until further orders.

This is the second time that the market regulator has cracked down hard on promoters and key officials at companies accused of diverting funds.

On June 12, the regulator had barred Essel group chairman Subhash Chandra and Punit Goenka, the managing director & CEO of Zee Entertainment Enterprises Ltd (ZEEL), from holding the position of director or serving as a key managerial person at any listed entity.

Apart from Eros International and its two senior executives, the two promoter entities — Eros Worldwide FZ LLC and Eros Digital Private Ltd — have also been restrained by the market regulator.

The regulator also directed the BSE to appoint a forensic auditor to examine the books of accounts of the three exclusively BSE-listed companies — Thinkink Picturez Ltd, Mediaone Global Entertainment Ltd, and Spicy Entertainment and Media Ltd, who prima facie acted as conduits in the alleged diversion of funds by Eros.

The forensic auditor will submit the report to the exchange within three months.

In its 53-page order, Sebi, prima facie, found that the books of accounts of the company have been overstated and do not present a true and fair picture of its financial health.