3Novices : United Breweries faces Sebi action for ‘flouting’ order on Vijay Mallya

The Securities and Exchange Board of India (Sebi) is planning action against United Breweries (UB) for failing to comply with the order barring Vijay Mallya, still chairman of the latter, from holding any key positions in listed companies.Sources say there could be strictures against UB under Clause 49 of the listing agreement, which allows suspension of trading and a monetary penalty. The role of independent directors (IDs) has also come under the scanner.Earlier this year, the markets regulator had barred Mallya from any board position or acting as a key managerial person in listed entities. And, from accessing the securities market, citing allegations of fund diversion of Rs 1,880 crore from United Spirits (USL). UB is now 43 per cent owned by Heineken and 30 per cent by Mallya and his holding companies. In February this year, when the BSE exchange asked for the status of compliance with the Sebi order, UB said it had urged Mallya to step down as chairman. Mallya had refused to do . 3Novices