Sebi passes consent order in Chinar Industries case
Mumbai: Market regulator Sebi has settled charges of non-compliance of takeover norms against Chinar Industries Investment & Finance Ltd, after the company paid Rs 5.85 lakh in settlement fees.
The Securities and Exchange Board of India (SEBI), in its consent order passed on May 22, said the order will come into force immediately and the regulator would not initiate any enforcement action against the company.
A consent order enables settling administrative or civil proceedings between the regulator and the concerned party.
The company had been charged with delay in filing the requisite information under the Sebi's Takeover Regulations for the financial years 1997-98 to 2009-10.
"It was observed that disclosures mandated under... Takeover Regulations for the financial years ended on March 31 of 1998 to 2008 were made belatedly on February 28, 2011," Sebi noted.
Chinar Industries Investment & Finance Ltd submitted a consent order application to Sebi in July last year. Pursuant to the application, company officials attended a meeting with Sebi's internal committee on consent in December 2012.
After that, the consent terms were placed before the High Powered Advisory Committee of Sebi. The committee recommended that proceedings may be settled if the applicant is agreeable to pay Rs 5.85 lakh towards settlement charges.
Accordingly, the applicant (Chinar Industries Investment & Finance) has remitted a sum of Rs 5.85 lakh towards the settlement charges.
Consequently, Sebi said charges of against the company "is settled and Sebi shall not initiate any enforcement action against the applicant" for the default.