sebi:SO/AN/PR/2022-23/7030
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Facts / Headnote
Adjudication proceedings disposed of in terms of Section 15JB of the SEBI Act read with Regulation 23(1) of Settlement Regulations upon settlement
Provisions invoked
- s. 15J
Regulations
- Reg. 10
- Reg. 25
- Reg. 28
- Reg. 23(1)
- Reg. 19(1)
- Reg. 19(7)
Parties
- IL&FS Financial Services Ltd.
Holding
The adjudication proceedings initiated against IL&FS Financial Services Ltd. vide Show Cause Notice No. EAD-5/MC/RM/16064/2022 dated April 12, 2022 are hereby disposed of in terms of Section 15JB of the SEBI Act read with Regulation 23(1) of Settlement Regulations upon payment of Rs. 13,65,000 as settlement amount.
Full text
Settlement Order in the matter of Fit and Proper Declaration by IL&FS Financial Services Ltd. |Page 2 of 4 for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as “Adjudication Rules”). The following was inter alia alleged and/or observed in the said SCN, in respect of the Applicant: 3.1. Metropolitan Stock Exchange of India Limited (hereinafter referred as “MSEI”) vide email dated January 21, 2020 informed SEBI that in accordance with Regulation 19(1) of SECC Regulations it had submitted Fit & Proper Declarations to SEBI. It also stated that declarations were received from all shareholders holding more than 2% shares of the paid up equity share capital of MSEI, except IL&FS, which has holding of 2.48% equity shares of MSEI. MSEI, further added that in this regard it has issued several reminders to IL&FS, in the past several months, however IL&FS has not responded. 3.2. Regulation 19(7) of the SECC Regulations, requires that any person holding more than 2% of paid up equity shares of a recognized stock exchange shall file a declaration to such exchange that he complies with fit and proper criteria. By failing to file declaration to MSEI as stated above, IL&FS was allegedly in violation of provision of Regulation 19(7) of SECC Regulations.
Settlement Order in the matter of Fit and Proper Declaration by IL&FS Financial Services Ltd. |Page 3 of 4 submitted the Fit and Proper declarations for financial years 2022, 2021, 2020 and 2019 to MSEI. The receipt of the same had been acknowledged by MSEI vide email dated November 16, 2022. Pursuant to another IC meeting held on November 16, 2022, the Applicant submitted revised settlement terms (RST) vide email dated November 30, 2022 wherein the Applicant had proposed to offer Rs. 13,65,000/- (Rupees Thirteen Lakhs Sixty Five Thousand Only) as Settlement Amount.
Settlement Order in the matter of Fit and Proper Declaration by IL&FS Financial Services Ltd. |Page 4 of 4 Financial Services Ltd. vide Show Cause Notice No. EAD-5/MC/RM/16064/2022 dated April 12, 2022 are hereby disposed of in terms of Section 15JB of the SEBI Act read with Regulation 23(1) of Settlement Regulations.
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Source: SecMarx — sebi:SO/AN/PR/2022-23/7030. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.