Electrosteel Steels fined Rs 10 mn for non-compliance of disclosure norms

As per regulatory norms, the company was obligated to submit its audited financial results for quarter and year ended March 31, 2018, within 60 days that is by May 30, 2018

Electrosteel Steels, which is undergoing insolvency resolution process, on Friday said the NSE has imposed a penalty of over Rs 10 million on the company for non-compliance of filing its financial results for the quarter and year ended on March 31, 2018, within the required time.

As per regulatory norms, the company was under the obligation to submit its audited financial results for quarter and year ended March 31, 2018, within 60 days from the end of the financial year, that is by May 30, 2018.

The company, which had requested an exemption from compliance under Regulation 33 of the Listing Obligations and Disclosure Requirements (LODR) from the Securities and Exchange Board of India (Sebi), said its request was denied on June 25.

"National Stock Exchange of India (NSE) has imposed a penalty of Rs 10,080,000 on Electrosteel Steels, vide its notice for non-compliance dated June 15, 2018... The penalty was imposed for non-compliance with Regulation 33 of the LODR Regulations," Electrosteel Steels said in a regulatory filing.

Electrosteel Steels, however, said pending Sebi's response to the exemption application filed by the company, the aforementioned penalty was imposed by NSE.

"The company is reviewing NSE's letter and seeking appropriate legal advice," it added.

Last month, metal and mining giant Vedanta had acquired the management control of debt-laden Electrosteel Steels.

As per the resolution plan submitted by Vedanta, Electrosteel Steels will be delisted from Indian stock exchanges - NSE and BSE.

In March this year, Vedanta was declared as successful resolution applicant by the committee of creditors (CoC) for Electrosteel Steels under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016.

National Company Law Appellate Tribunal (NCLAT), however, has said that any steps over Electrosteel would be subject to the outcome of its final decision.