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FMCG major Hindustan Unilever has settled a case related to alleged non-compliance of takeover norms with capital markets regulator Sebi after a total payment of nearly Rs 2.60 lakh as settlement fee.
Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against Hindustan Unilever over alleged failure to make timely disclosures to the stock exchanges, mandated under the takeover norms, for the years 2008 and 2010.
Following a settlement under Sebi's consent mechanism, the market regulator in a ruling today said it is disposing off "the... Adjudication proceedings pending in respect of the applicant (Hindustan Unilever)".
As per takeover norms, a listed company is required to make yearly disclosures with respect to its shareholding pattern, within 30 days of a fiscal year ending March 31.
However, HUL had allegedly failed to comply with the provisions for 2008 and 2010.
While proceedings against it were in progress, HUL had offered to settle the matter on payment of Rs 2,59,250 as settlement charges under Sebi's consent order mechanism.
Thereafter, Sebi's High Powered Advisory Committee on Consent after deliberations, recommended the case for settlement on the payment of the amount.
This was also approved by Sebi's panel of whole time members, following which HUL remitted an amount of Rs 2,59,250 on January 6, 2015.
Sebi said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by HUL is found to be untrue.
Under the consent mechanism, entities can seek to settle cases with the regulator after payment of certain charges and and other expenses without admission of guilt.
