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Welspun India settles case of takeover norms violation with Sebi

MUMBAI: Welspun India has settled a dispute related to violation of takeover norms with capital market regulator Sebi by paying an amount of Rs 2.41 lakh in settlement fee.

The company had allegedly failed to make requisite shareholding disclosures in 2005 within the prescribed time frame, as given under the capital market norms.

In an order passed on December 30, the Securities and Exchange Board of India (Sebi) said that “this settlement order disposes the said adjudication proceedings pending in respect of the applicant of the delayed compliance of the provision of…Takeover Regulations.”

Subsequent to a show-cause-notice on the case, Welspun India had proposed to settle the case on payment of Rs 2,41,500 as settlement charges under Sebi consent order mechanism.

Under consent mechanism, entities can seek to settle cases with the regulator after payment of certain charges and and other expenses without admission of guilt.

Thereafter, Sebi’s High Powered Advisory Committee (HPAC) considered and recommended that the case can be settled on payment of the proposed amount.

The HPAC recommendations were also accepted by the panel of whole time members of Sebi following which the company has remitted the amount to the market regulator.

As per Sebi consent order, the regulator could take enforcement actions including reopening of the pending proceedings against Welspun India, if any representation made by the company are discovered to be untrue.

Source: Economic Times