Tata Technologies has reached a settlement with capital markets regulator Sebi in a case related to alleged violation of disclosure guidelines and investor protection after paying a settlement amount of Rs 25 lakh.
The order came after Tata Technologies filed a suomotu settlement application with Sebi, proposing to settle “by neither admitting nor denying any conclusion” of the enforcement proceedings that may be initiated against the company for the alleged violation of the DIP (Disclosure and Investor Protection) guidelines.
“It is hereby ordered that all proceedings which may be initiated in view of the violations…
be disposed of in respect of the applicant (Tata Technologies), the Securities and Exchange Board of India (Sebi) said in its settlement order passed on September 27.
The company made preferential allocations several times during the period from December 27, 2000 to March 13, 2008.
These allotments resulted in the issuance of shares to more than 49 shareholders in a single financial year, in violation of Sebi’s DIP guidelines.
Tata Motors, the promoter of Tata Technologies, has been appointed to make an offer to all existing eligible shareholders of Tata Technologies from November 11, 2022 to tender their shares and obtain redemption.
However, none of the eligible shareholders tendered their shares to the promoter. This was certified by an independent, peer-reviewed chartered accountant, the order said.
Tata Motors is listed on the BSE and NSE.
The applicant had also filed an application for interference for violation of a certain section of the Companies Act before the National Company Law Tribunal (NCLT).
NCLT had in May disposed of the compounding request by issuing an order under which compounding was approved, subject to the applicant paying the compounding charges of Rs 3.42 crore.
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First print: October 3, 2023 | 7:50 PM IST