sebi:SO/VV/AA/2020-21/4170
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Facts / Headnote
Settled - adjudication proceedings disposed of on settlement terms
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 23J
- s. 23H
- s. 23
Regulations
- Reg. 25
- Reg. 28
- Reg. 23(1)
- Reg. 3(1)
- Reg. 23(2)
- Reg. 23(4)
- Reg. 34(3)
- Reg. 6(2)(a)
Parties
- Shri Ashok I. Bhuta
Holding
The adjudication proceedings initiated against Shri Ashok I. Bhuta 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 upon payment of Rs. 18,48,750 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) Considering that related party disclosures with respect to AML were not made, Shri Ashok I. Bhuta (hereinafter referred to as the ‘Applicant’), being the Compliance Officer of SPIL, violated the provisions of regulation 6(2)(a) of SEBI (LODR) Regulations, 2015 as they failed to ensure conformity with the regulatory provisions applicable to the listed entity in letter and spirit.
Page 3 of 4 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 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/2020-21/4170. 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.