Ramkrishna Forgings promoter group entity Riddhi Portfolio today settled a case related to alleged violation of takeover norms with regulator Sebi after paying over Rs 99 lakh.
According to an order, the Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings to inquire into the violation SAST (Substantial Acquisition of Shares and Takeovers) Regulations by Riddhi Portfolio Pvt Ltd (RPPL).
Ramkrishna Forgings Ltd (RFL) had issued 12 lakh warrants to RPPL on July 14, 2014 and the same were converted into 12 lakh shares on November 7, 2015 at the price of Rs 150 per share.
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As per SAST Regulations, no acquirer should pick up shares in a firm entitling him or her to exercise 25 per cent or more voting rights without making a public announcement of an open offer for acquisition of the scrips.
However, the promoter group entity failed to make public announcement and allegedly violated the SAST Regulations.
While the adjudication proceedings were pending, RPPL submitted an application for their settlement, Sebi noted in an order.
The settlement terms proposed by RPPL were placed before Sebi's High Powered Advisory Committee (HPAC), which recommended the case for settlement on payment of Rs 99.39 lakh by the promoter group entity.
The recommendation of HPAC were also approved by the panel of the whole time members of the regulator.
Last month, RPPL remitted the amount, following which Sebi disposed of the adjudication proceedings.
However, the regulator said if any representation made by RPPL in the settlement proceedings is subsequently discovered to be untrue, enforcement actions can be initiated can be initiated against the promoter group entity.
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