Thursday’s close for Eros International Media shares was Rs 26.34, which was 1.42% less than the previous close of Rs 26.72. After market hours, the company told the exchanges about the order from the Sebi.
Shares of Eros International Media Ltd are in the news today after the Securities and Exchange Board of India (Sebi) banned Eros International Media CEO Pradeep Kumar Dwivedi from the securities market until further notice for reportedly breaking trade practise rules. Sebi has also told Vice Chairman and Managing Director Sunil Arjan Lulla that he can’t be a director of any public company, including Eros International.
On Thursday, shares of Eros International Media finished the day 1.42% lower at Rs 26.34, down from Rs 26.72 the day before. After market hours, the company told the exchanges about the order from the Sebi. The company’s market value dropped to Rs 252.64 crore. On BSE, Eros International shares started off lower at Rs 25.71. On BSE, a total of 0.15 lakh shares were traded, which brought in Rs 3.97 crore.
In one year, the media stock went up 17.51 percent, but since the beginning of this year, it has gone down 9 percent.
In terms of technicals, Eros International’s relative strength index (RSI) is at 54.5. This means that the stock is neither overvalued nor oversold. The stock’s one-year beta is 0.3, which means that it was not very volatile during that time. The 20-day, 50-day, and 100-day moving averages are higher than the price of Eros International stock, but the 5-day, 10-day, and 200-day moving averages are lower.
The market watchdog has told Eros International’s CEO Pradeep Kumar Dwivedi that he can’t be a member of any other listed company besides Eros International. In its temporary order, the regulator said, “Noticees 1 through 5 are not allowed to buy, sell, or deal in securities in any way, directly or indirectly, until further orders.”
In its financial report for FY 2019-20, Eros said that its “Content Advances” and “Film Rights” were worth Rs 1,553.52 crore less than what they were worth. In the same year, Eros also wrote off Rs 519.98 crore worth of trade debts. Based on this information, the National Stock Exchange (NSE) looked at the company’s financial records and sent a preliminary examination report to Sebi.
In the report, it was said that most of Eros’s income from operations, trade receivables, and loans given to related parties had grown by a large amount in FY 2019-20. The preliminary report found that, at first glance, these trades seemed to show that the company was misreporting or diverting money.
The company said, “We are in the process of getting legal advice on the matter and will act accordingly.”
Eros was founded on August 19, 1994, with the goal of showing, selling, and making money from all kinds of films and TV shows, including commercials. In 2010, Eros went public for the first time and earned about Rs. 350 Cr. It was then listed on BSE Ltd. (“BSE”) and NSE.