Kishore & Rakesh Biyani fined for Future Retail disclosure lapses

Mumbai: The Securities and Exchange Board of India (Sebi) has imposed a penalty of ₹20 lakh each on Kishore Biyani and his brother Rakesh Biyani for alleged violation of disclosure norms and related party transactions in a case involving Future Retail. The regulator alleged that Future Retail had failed to adequately disclose certain related-party relationships and transactions in its annual reports, and had also not obtained mandatory approvals from the audit committee and shareholders in some cases. It also fined former chief financial officer C P Toshniwal ₹10 lakh.

The case relates to an investigation Sebi had launched in June 2022 into alleged manipulation of Future Retail's accounts and possible siphoning of funds by promoters and key managerial personnel during 2019-20 to 2021-22. The regulator had appointed forensic auditor Chokshi & Chokshi LLP in August 2022 to examine transactions, borrowings and disclosures.

In its findings, Sebi said several borrowing entities were effectively operating under the influence of Kishore and Rakesh Biyani, with former directors of those entities admitting during investigation that they were merely 'namesake' directors.