Automobile Products of India has settled a case of disclosure norm violation with capital markets regulator Sebi by paying an amount of Rs 6.63 lakh as settlement fee.
Automobile Products had allegedly failed to make yearly disclosures for 1998 to 2010, within the stipulated time frame, as given under the capital market norms.
In a ruling today, Securities and Exchange Board of India (Sebi) said that "this consent order disposes of the...Adjudication proceedings pending in respect of the applicant".
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Subsequent to show-cause-notice, Automobile Products had proposed to settle the case on payment of Rs 6.63 lakh as settlement charges under Sebi consent order mechanism.
Thereafter Sebi's High Powered Advisory Committee (HPAC) considered and recommended that the case can be settled on payment of the proposed amount following which the company made the payment.
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 Automobile Products, if any representation made by the company are found to be untrue.
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.
