KUBR

SEBI bars listed IT firm and two promoters after sale proceeds were diverted instead of repaying bonds

Zenith Infotech Ltd · IT products and managed services (listed)

Related-party diversionMisuse of raised fundsRegulatory breach

The case in brief

Visible before detection

    Checks that could have surfaced it, on hindsight

    1

    End-use tracing of funds

    Sale proceeds leaving to overseas subsidiaries instead of the bond trustee would show.

    Can mislead when: Kubr sees only the company's own accounts. Once money reaches a third party's bank, Kubr can flag the payee but cannot see the next hop without that party's consent.

    2

    Ownership / related-party links

    The buyer vehicle's link to a promoter family director would show.

    Can mislead when: Nominee directors and offshore layers hide links. Name matching throws up false positives, so every flag shows its evidence path.

    3

    Regulatory & litigation records

    The bond default notices and creditor suits would appear in exchange and court records.

    Can mislead when: Court records lag and name spellings vary. A clean record can mean the problem has not reached court yet.

    4

    Governance signals

    Disclosures to the exchanges that departed from the shareholder resolution would stand out.

    Can mislead when: Private companies file late, so these signals are lagging. Kubr uses them to support other flags, not to prove anything alone.

    Where Kubr services would have helped

    Borrower monitor

    Offered in India
    • C3 The buyer vehicle's link to a promoter family director would show.
    • C6 Sale proceeds leaving to overseas subsidiaries instead of the bond trustee would show.
    • C8 The bond default notices and creditor suits would appear in exchange and court records.
    • C11 Disclosures to the exchanges that departed from the shareholder resolution would stand out.

    Verified Snapshot

    Offered in India
    • C3 The buyer vehicle's link to a promoter family director would show.
    • C8 The bond default notices and creditor suits would appear in exchange and court records.
    • C11 Disclosures to the exchanges that departed from the shareholder resolution would stand out.

    Legal diligence support

    Offered in India
    • C3 The buyer vehicle's link to a promoter family director would show.
    • C8 The bond default notices and creditor suits would appear in exchange and court records.
    • C11 Disclosures to the exchanges that departed from the shareholder resolution would stand out.

    Promoter profiles

    Offered in India
    • C3 The buyer vehicle's link to a promoter family director would show.
    • C8 The bond default notices and creditor suits would appear in exchange and court records.
    • C11 Disclosures to the exchanges that departed from the shareholder resolution would stand out.

    Mapped from the checks each service runs. A hindsight reading of public records, not a promise that the failure would have been found.

    A summary of public documents. It reports what the sources say. It is not Kubr's finding and not a statement of guilt.