sebi:SO/VV/AA/2020-21/4168
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Facts / Headnote
Disposed of / settled in terms of Section 15JB of the SEBI Act, 1992 and Section 23JA of the SCRA read with regulation 23(1) of the Settlement Regulations on the basis of settlement terms
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 23J
- s. 23
- s. 23H
Regulations
- Reg. 25
- Reg. 28
- Reg. 23(1)
- Reg. 3(1)
- Reg. 23(2)
- Reg. 23(4)
- Reg. 17(8)
- Reg. 33(2)(a)
- Reg. 34(3)
Parties
- Shri Uday Baldota
Holding
The adjudication proceedings initiated against the Applicant vide SCN dated May 19, 2020 are disposed of in terms of Section 15JB of the SEBI Act, 1992 and Section 23JA of the SCRA read with regulation 23(1) of the Settlement Regulations on the basis of settlement terms.
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) Since the material fact that AML was a related party was omitted in the financial statements, the compliance certificate provided by the Chief Financial Officer of SPIL viz. Shri Uday Baldota (hereinafter referred to as the “Applicant”) as required under regulation 33(2)(a) and regulation 17(8) read with Part B of Schedule II of SEBI (LODR) Regulations, 2015, was untrue, resulting in the non-compliance with regulation 17(8) and regulation 33(2)(a) of SEBI (LODR) Regulations, 2015 by the Applicant.
Page 3 of 4 3. Accordingly, in terms of rule 4(1) of SEBI Adjudication Rules read with Section 15-I of SEBI Act, 1992 and rule 4(1) of SCR Adjudication Rules read with Section 23-I of the SCRA, a Show Cause Notice dated May 19, 2020 (hereinafter referred to as ‘the SCN’) was issued to the Applicant, by the undersigned, calling upon to show cause as to why an inquiry should not be held against it in terms of rule 4 of the SEBI Adjudication Rules & rule 4 of SCR Adjudication Rules and why
Page 4 of 4 7. Therefore, in view of the acceptance of the settlement terms and the receipt of settlement amount as above by SEBI, the instant adjudication proceedings initiated against the Applicant vide SCN dated May 19, 2020 are disposed of in terms of Section 15JB of the SEBI Act, 1992 and Section 23JA of the SCRA read with regulation 23(1) of the Settlement Regulations on the basis of the settlement terms.
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Source: SecMarx — sebi:SO/VV/AA/2020-21/4168. 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.