Stocks

Disclosure norm violations: SEBI disposes of IFCI case

Our Bureau Mumbai | Updated on June 17, 2021

Overturns its own penalty order against the lender

Market regulator SEBI has disposed of the case against IFCI Ltd and overturned its earlier order to impose penalty on the company in a case related to alleged violation of disclosure norms.

In 2017, the Securities and Exchange Board of India had imposed a penalty of ₹14 lakh on the company following an investigation into trading in shares of Glodyne Technoserve Ltd (GTL) during January, 2012 to April 20, 2013. The penalty was for suspected price manipulation by promoter entities of the firm. IFCI had provided loan to Glodyne Ventures and Holdings for which the shares of GTL held by its promoter Divvyani Sarnaaik were pledged with IFCI. The lender had an aggregate of 5 per cent or more of the share capital of GTL in the form of the pledged shares, which were subsequently invoked by it.

It was alleged that IFCI had failed to make the required disclosures in terms of SAST Regulations.

SAT directed SEBI to relook

However, in 2018 the Securities Appellate Tribunal (SAT) set aside a SEBI order .SAT said that IFCI had raised a plea before the adjudicating officer that the shares acquired by invoking the pledge were sold from time to time, as a result, the shareholding of the term lender did not exceed the limits prescribed under the SAST and PIT Regulations. On Thursday, SEBI overturned its earlier order stating that the alleged violations of Regulation 29(1), 29(2) read with 29(3) of SAST Regulations and Regulation 13(3) read with 13(5) of PIT Regulations are not established.

Published on June 17, 2021

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