Sebi today settled a case involving RHC Holding -- a promoter of Dion Global Solution -- which allegedly violated takeover regulations, through consent mechanism after payment of Rs 39 lakh as settlement fee.
In a consent order, the Securities and Exchange Board of India (Sebi) said it was disposing of the adjudication proceedings initiated against RHC Holding.
As part of promoters' looking to consolidate their holding in Dion Global Solution, they had decided to purchase 15.90 lakh shares of the company from the open market.
Inadvertently, the order was placed in the name of the applicant instead of another promoter group entity on March 25, 2014. Subsequently, RHC Holding's stake rose from 23.77 per cent to 28.70 per cent, crossing the 25 per cent threshold limit under Sebi's takeover regulations.
Subsequently, the transaction was reversed by the applicant on March 27, 2014.
In the matter, RHC Holding submitted a revised consent application in October 2015 and proposed to pay Rs 38,96,253 as settlement fee.
The proposal was put up before Sebi's High Powered Advisory Committee, which recommended that the "case may be settled on payment of Rs 38,96,253."
The consent order has been passed by Sebi Whole Time members Rajeev Kumar Agarwal and Prashant Saran.
RHC Holding has remitted the amount towards the settlement charge.
