SEBI has banned Parsvnath Developers (PDL) from the securities market for six months and imposed a fine of ₹15 lakh on the company for flouting listing norms. SEBI discovered that PDL failed to make provision for the outstanding amount in ledger accounts of contractors and sub-contractors, and also failed to strictly comply with Accounting Standards 7 or AS 7, which deals with construction contracts.
The Listing Agreement between the stock exchanges and companies cast an obligation on the company to abide by certain mandates related to disclosures, corporate processes, corporate governance etc. and such provisions cast the liability on the listed entity. SEBI said that PDL was being restricted from accessing the securities market and further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of six months.
“Thus, I find that PDL, to that extent, failed in presenting a true and fair view of the state of affairs of the company in compliance with the mandate contained in Accounting Standards and thereby, violated provisions of ... the erstwhile Listing Agreement,” SEBI Whole-Time Member Ananta Barua said in his order.
“I find that obligation to abide by the erstwhile Listing Agreement was on PDL and since the financials of PDL for the period of FY 2009-10 to FY 2011-12 did not represent the true and fair view of the state of affairs of PDL,” SEBI said.
The company has been directed to pay the fine within 45 days, SEBI said in the order.
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.