sebi:SO/VV/AA/2020-21/4163
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Facts / Headnote
Disposed of by settlement
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 23J
- s. 23
- s. 23E
Regulations
- Reg. 25
- Reg. 28
- Reg. 23(1)
- Reg. 3(1)
- Reg. 23(2)
- Reg. 23(4)
- Reg. 34(3)
Parties
- SPIL
Holding
The adjudication proceedings initiated against the Applicant/SPIL vide SCN dated May 19, 2020 are disposed of in terms of settlement upon payment of Rs. 56,11,500 towards settlement charges.
Full text
Page 2 of 4 (i) Prior approval of the audit committee for transactions with AML, as required under regulation 23(2) of SEBI (LODR) Regulations, 2015, was not obtained. (ii) Considering that the transactions with AML would have qualified as material related party transactions, it required approval of shareholders under regulation 23(4) of SEBI (LODR) Regulations, 2015, which was not obtained. (iii) Disclosure of related party transactions with AML in the Annual Reports for FY 2015-16 and FY 2016-17, as required under regulation 34(3) read with schedule V of SEBI (LODR) Regulations, 2015, was not made. (iv) In view of the same, it was observed that SPIL had violated regulation 23(2), 23(4) and 34(3) of SEBI (LODR) Regulations, 2015.
Page 3 of 4 be not imposed under Section 15HB of the SEBI Act, 1992 and Section 23E of SCRA. 4. The Applicant, vide application filed on May 19, 2020, proposed to SEBI to settle the instant proceedings, without admitting or denying the findings of fact and conclusions of law, through a settlement order and filed settlement application bearing reference no. 4163/2020 with SEBI in terms of Regulations 3(1) and 3(2) of the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2018 (hereinafter referred to as 'Settlement Regulations').
Page 4 of 4 8. This order shall come into force with immediate effect. Further, in terms of Regulation 28 of the Settlement Regulations, this order is without prejudice to the right of SEBI to take any enforcement action including restoring or initiating the proceedings in respect to which this settlement order is passed, if: (i) any representation made by the Applicant in the settlement proceedings are subsequently discovered to be untrue; or (ii) 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/VV/AA/2020-21/4163. 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.