Sebi bars SecUR Credentials, managing director for alleged fund diversion

The Securities and Exchange Board of India (Sebi) has barred SecUR Credentials and its managing director Rahul Belwalkar from the securities market for alleged violations. Initially listed on NSE Emerge, SecUR migrated to the mainboard of both exchanges in October 2022. \r

Belwalkar faces restrictions on securities transactions and directorship in listed companies until further notice. Sebi's action stems from accusations of fund diversion to promoters, directors, and entities by Belwalkar. Notably, SecUR's promoters sold substantial holdings amid a 235% stock price surge from February to April 2022, prompting Sebi to investigate. \r

This follows Sebi's previous actions against Varanium Cloud for misusing IPO funds, including transactions with SecUR. The regulator criticized SecUR and Belwalkar for inadequate disclosure practices concerning loans and rights issue status, reflecting a lax approach to compliance.