sebi:SO/SM/HP/2020-21/6258
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Facts / Headnote
Disposed of via settlement on payment of settlement amount
Regulations
- Reg. 25
- Reg. 28
- Reg. 23
- Reg. 30
- Reg. 4(2)
- Reg. 4(1)(d)
- Reg. 30(9)
Parties
- Punjab Chemicals and Crop Protection Limited
Holding
The adjudication proceedings initiated against Punjab Chemicals and Crop Protection Ltd vide SCN ref.no. SEBI/EAD/AA/KL/10923/2020 dated June 10, 2020 are disposed of through settlement on payment of Rs. 21,67,500 without admitting or denying the findings of fact and conclusions of law.
Full text
Page 2 of 4 informed about the sale of its entire shareholding in the step-down subsidiary company viz. SQ and other related details. However, it is alleged that the Noticee had not disclosed about the outstanding debt (liabilities) of the aforementioned two subsidiary companies, which arose from the default of a settlement agreement. The aforementioned settlement agreement was in respect of sale of SQ and was entered into between the Noticee, SD and STS, erstwhile shareholders of SQ and the Purchasers. b) It is observed that the Noticee was aware of the fact that there was a default in payment by the Purchasers to the erstwhile shareholders and thus, the debt was devolved on SD and STS, but had failed to disclose the same to the Stock Exchanges. Therefore, it is alleged that the Noticee violated Regulation 4(1)(d), 4(1)(h), 4(1)(j), 4(2)(d)(iii), 30(2), 30(4)(i) read with Schedule III, Reg. 30(9), Clause 5 of Part 'B' of Schedule III read with Reg. 30 of LODR Regulations.
Page 3 of 4 petition (Civil) No. 3 of 2020, wherein the Hon’ble SC has suspended the limitation period under general laws and special laws. The applicant vide its letter dated January 06, 2021, proposed the payment of Rs. 21,67,500/- (Rupees Twenty-One Lakh Sixty- Seven Thousand and Five Hundred only) towards full and final settlement of all regulatory, civil or criminal proceedings in relation to the facts contained in the SCN without admitting or denying any violation on its part.
Page 4 of 4 terms of Regulation 28 of the Settlement Regulations, including restoring or initiating the proceedings in respect to which the settlement order was passed against the applicant, if: a. any representations made by the applicant in the settlement proceedings is subsequently found to be untrue; or b. the applicant breaches any of the clauses / conditions of undertakings / waivers filed during the current settlement proceedings.
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Source: SecMarx — sebi:SO/SM/HP/2020-21/6258. 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.