RCom Settles Listing Norms Case with Sebi
New Delhi: Debt-laden Reliance Communications has settled a case with markets regulator Sebi over noncompliance with listing norms, including alleged failure to promptly inform about interest payment default on debentures, according to an order.
The company, part of the Anil Ambani group, also settled the issue of noncooperation with the credit rating agencies and debenture trustee that were in violation of listing norms.
In an order on Friday, Sebi said the case has been settled after payment of ₹ 62.40 lakh towards settlement charges. “The proceedings that could have been initiated for the defaults... are settled qua the applicant,” the order said. It also noted that Sebi shall not initiate any enforcement action against the applicant.
The order comes after RCom filed a suo-moto application with Sebi to settle the case. Under the settlement mechanism, an entity is allowed to settle charges by paying a penalty without admission or denial of guilt.
Oneof theissueswasaboutnotinforming the default in payment of interest/ principal to the debenture trustee promptly. Another issue pertained to non-submission of information with respect to change in credit rating and not sending notices relating to the meetings of NCD holders to the debenture trustee.
As per the order, the authorised representatives of the company had a meeting with the internal committee of Sebi in March 9, wherein the settlement terms were deliberated.