#round tripping

SAT affirmed SEBI's two-year market debarment and penalties on Omaxe Ltd., its promoters and former CFOs for round-tripping and misstating accounts. The decision underscores that debarment is a proportionate sanction for corporate fraud, binding listed firms and key managerial personnel.

NCLAT rules that inter-group fund transfers lacking genuine credit disbursal or repayment obligation fail the 'financial debt' test under Section 5(8) of the Insolvency and Bankruptcy Code. The ruling shields corporate debtors from IBC proceedings where transactions are sham or circular, reinforcing the need for commercial substance in financial creditor claims.