Religare Enterprises has settled a probe by markets regulator Sebi into alleged disclosure lapses by paying Rs 2 lakh towards settlement charges.
The regulator initiated adjudication proceedings against Religare and sent a notice in July 2018 alleging that the company failed to disclose the information with regard to trading in the scrip of Religare Enterprises by its chairman Sunil Godhwani to the exchanges within stipulated time and, hence, alleged to have violated the PIT (Prohibition of Insider Trading) norms.
The Securities and Exchange Board of India (Sebi) agreed to settle proposed adjudication proceedings in the case after it was approached by the entity with a plea under the settlement regulations.
Under the settlement, an entity is allowed to settle charges by paying a penalty without admission or denial of guilt.
Thereafter, the entity was called for an internal committee meeting in December 2018 wherein it was given option of preferring a settlement procedure by paying Rs 2 lakh as settlement charges or come through normal procedure.
The entity opted for settlement procedure and as required, paid the amount in 10 days from the date of meeting, Sebi said.
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Accordingly, "it is hereby ordered that this settlement order disposes of the... adjudication proceedings initiated against Religare Enterprises Ltd", the regulator said in a Thursday order.
It further said enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by them is found to be untrue.