New Delhi: The Securities and Exchange Board of India (SEBI) has barred Seacoast Shipping Services Limited (SSSL) and its key officials from raising funds from investors for five years, after finding the company guilty of diverting rights issue proceeds, fabricating accounts, and misleading shareholders with false disclosures.

The order also imposes penalties and directs disgorgement of unlawful gains, bringing the curtain down on one of the most unusual cases of market misconduct in recent years.

In a detailed order, SEBI said SSSL had diverted crores of rupees raised through a rights issue and created fictitious accounts to hide the misuse.

At one point, the company’s promoters even attempted to justify the diversion with a bizarre explanation — that the funds were used to pay ransom

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