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Religare Enterprises (REL) has settled a probe by SEBI through consent mechanism by paying ₹2 lakh towards settlement charges.
It was alleged that REL had failed to disclose the transactions of its Chairman Sunil Godhwani to the exchanges within the stipulated time. The market regulator had initiated an adjudication proceeding against REL and issued a show cause notice for violation of PIT (Prohibition of Insider Trading) norms.
The regulator agreed to settle the adjudication proceedings in the case after it was approached by the entity with a plea under the settlement regulations.
However, REL was called for an internal committee meeting in December 2018 wherein it was given the option of preferring a settlement procedure by paying ₹2 lakh as settlement charges or come through the normal procedure. As the company opted for the settlement procedure, SEBI on Thursday disposed of the adjudication proceedings initiated against it.
Under the settlement, an entity is allowed to settle charges by paying a penalty without admission or denial of guilt. However, SEBI will take enforcement actions, including commencing or reopening of the proceedings, if any representation made by the company is found to be untrue.
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