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Polson Ltd has settled a case with the Securities and Exchange Board of India (SEBI) for alleged delay in compliance of public shareholding norms on payment of Rs 6.8 lakh towards settlement charges.
The order came after the Mumbai-based company approached SEBI with a plea under settlement regulations, proposing to pay a penalty without admission or denial of guilt.
“The instant adjudication proceedings initiated against the applicant (Polson) are settled”, SEBI said in a settlement order dated November 22.
The regulator in May 2018, appointed an adjudication officer to look into the matter of delayed compliance of the requirement to maintain the 25 per cent minimum public shareholding (MPS) by the company.
SEBI, in its order passed in January this year, had noted that the company had made a delay of over 4 years (from June 2013 till October 2017) in complying with MPS requirement.
While the adjudication proceedings were in progress, Polson submitted an application for settlement of the adjudication proceedings.
Thereafter, SEBI’s High Powered Advisory Committee, is considering the facts and circumstances of the case and settlement terms recommended the settlement on payment of Rs 6.8 lakh.
Accordingly, after the approval by SEBI’s panel of whole-time members, the company has remitted the amount.
The order also states that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by it is found to be untrue.
Earlier in June, 2013, SEBI had imposed various curbs on Polson and its directors as well as promoters for not meeting the minimum public shareholding regulations. Later in June 2016, the regulator had confirmed the directions.
In its submission to Sebi in October 2017, the firm said that it had complied with MPS requirements by way of sale of 11,200 shares by its promoters through ‘offer for sale’ mechanism and the same was informed to the exchange.
Pursuant to this, the regulator in January, 2018 had revoked the restrictions imposed on the firm, its directors, promoters with immediate effect. However, Sebi had noted a delay in compliance with the regulations.
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