sebi:ORDER/SM/S./2023-24/28338

SEBI · SEBI · 2023-04-21 · Soma Majumder, Adjudicating Officer

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Facts / Headnote

Partially established: allegations under Regulation 51(1), 51(2) read with clause A(1) of Part B of Schedule-III, Regulation 52(1), Regulation 56(1)(a) and 56(1A) read with 56(3) of LODR Regulations established; allegations under Regulation 56(1)(b), 56(1)(c)(i), 56(1)(c)(ii) and 56(1A) read with 56(3) of LODR Regulations not established.

Provisions invoked

• s. 15A
• s. 15
• s. 19
• s. 15H
• s. 15J
• s. 28A

Regulations

• Reg. 51
• Reg. 51(1)
• Reg. 51(2)
• Reg. 55
• Reg. 52
• Reg. 52(1)
• Reg. 56
• Reg. 56(1)(a)
• Reg. 56(3)
• Reg. 56(1)(c)
• Reg. 51(3)
• Reg. 56(1)(b)
• Reg. 56(2)
• Reg. 54(1)
• Reg. 61
• Reg. 56(C)(2)
• Reg. 56(1)(c)(i)

Parties

• Andhra Pradesh Power Finance Corporation Ltd.

Holding

SEBI found that APPFCL violated Regulation 51(1) and 51(2) read with clause A(1) of Part B of Schedule-III (delayed default disclosure by 20 days), and Regulation 52(1), 56(1)(a) and 56(1A) read with 56(3) (non-submission of financial results/annual report to Debenture Trustee), but found no violation of Regulation 56(1)(b), 56(1)(c)(i), 56(1)(c)(ii) and 56(1A) read with 56(3).

Full text

Adjudication Order in respect of Andhra Pradesh Power Finance Corporation Ltd. Page 2 of 27 APPFCL. The period of examination was from April 01, 2022 to January 31, 2023 (“examination period”). Pursuant to examination, SEBI found certain provisions of the aforesaid laws allegedly violated by the Noticee.

Adjudication Order in respect of Andhra Pradesh Power Finance Corporation Ltd. Page 3 of 27 to the Noticee by SPAD and Digitally Signed Email dated July 03, 2023. Subsequently, Noticee appeared for the hearing held on July 20, 2023 and reiterated its submissions made in its reply vide letter dated June 27, 2023. The relevant extracts of the submissions made by Noticee vide letter dated June 27, 2023 are given hereunder:-

Adjudication Order in respect of Andhra Pradesh Power Finance Corporation Ltd. Page 4 of 27 on the website of the Stock Exchange and there was no act of omission of the price-sensitive information bv the Company.” d) “APPFCL has had in place, a website providing information on the activities of the Company, at all times. To bring in line with the disclosure norms of SEBI (LODR) Regulations, 2015, APPFCL revamped the website to include all the required disclosures to be made available on the website as per the norms applicable for a debt-listed Company. When called for the status of the updation of website by the office of the National Stock Exchange, factual information stating that the "website is under maintenance" prevalent at that point in time was provided and also since the management of the Company comprising of senior secretaries of the state in the finance department were held up with the budget assembly related activities which was scheduled for the month of March 2023, the website was launched on 31st March 2023 with the approval of the board members.” e) “We request your good office to make a special note that the Company's website provides all the required information and are available to all the stakeholders of the Company.” f) “For the Financial year 2021-22, the audit of the Company's accounts was carried out by M/s Seshachalam & Co, Chartered Accountants, Hyderabad, and statutory auditors appointed by Comptroller and Auditor General of India (C&AG). The compl

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