Capital market regulator Sebi has settled a case of alleged violation of takeover norms against Mahesh Agricultural Implement and Steel Forgings after the company paid Rs 4.56 lakh as settlement fee.
Mahesh Agricultural had allegedly not made necessary disclosures within the stipulated time from 2003 to 2011, as required under the takeover regulations.
In its order dated October 9, the Securities and Exchange Board of India (Sebi) has settled the case under the consent mechanism norms wherein the regulator would not initiate any enforcement action against the firm for the alleged default.
Under the consent mechanism, entities can seek settlement of cases with the market regulator after payment of certain charges and other expenses without admission of guilt.
In June this year, Mahesh Agricultural had proposed to pay Rs 4,56,875 under Sebi's cosent mechanism to settle adjudication proceedings against it for the delayed compliance with disclosure requirements.
Thereafter Sebi's High Powered Advisory Committee (HPAC) considered and recommended that the case can be settled on payment of the proposed amount.
The HPAC recommendation were also accepted by a panel of Sebi's whole time members following which the company remitted the amount September, 2014.
However, Sebi said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by Mahesh Agricultural is found to be untrue.
