A preliminary probe by the Securities and Exchange Board of India (SEBI) has has cleared Sun Pharma of a fraud alleged by a whistleblower.
Late last year, SEBI confirmed reports that it had received a whistleblower complaint against the pharma giant. The whistleblower sent SEBI a 150-page letter alleging various irregularities. Specifically, according to a Business Standard report, the market regulator had sought answers on two queries: Alleged fund diversion through the company’s key distributor and subsidiary, Aditya Medisales and on the company’s 2004 fund raising through foreign currency convertible bonds.
Unfortunately for Sun, during SEBI's eight month investigation, the drugmaker's stock depreciated nearly 30 percent.
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