RCom set­tles case with Sebi af­ter pay­ing ~6.24 mn

Business Standard - - COMPANIES -

Debt-rid­den Reliance Com­mu­ni­ca­tions (RCom) has set­tled a case with mar­kets reg­u­la­tor Sebi over non-com­pli­ance 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 non-co­op­er­a­tion with 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 ~6.24 mil­lion 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.

One of the is­sues was about not in­form­ing 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 non-con­vert­ible deben­tures (NCD) hold­ers to the deben­ture trustee.

Ac­cord­ing to 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.

There­after, Sebi’s high pow­ered ad­vi­sory com­mit­tee rec­om­mended the case for set­tle­ment on the pay­ment of the ~6.24 mil­lion by the ap­pli­cant and the the same was ap­proved by the reg­u­la­tor's panel of whole-time mem­bers. Ac­cord­ingly, Se­cu­ri­ties and Ex­change Board of In­dia (Sebi) has dis­posed of the ad­ju­di­ca­tion pro­ceed­ings ini­ti­ated against RCom.

That en­force­ment ac­tions, in­clud­ing com­menc­ing or re­open­ing of the pro­ceed­ings, could be ini­ti­ated if any rep­re­sen­ta­tion made by it is found to be un­true, it added.

Sebi has dis­posed of the ad­ju­di­ca­tion pro­ceed­ings ini­ti­ated against RCom

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