Pradeep Metals settles case with Sebi on payment of Rs 4 lakh

Market regulator had hauled firm for violating SAST (Substantial Acquisition of Shares and Takeovers) regulations

Pradeep Metals Ltd has settled a case related to alleged non-compliance of shareholding disclosure norms with market regulator Sebi after payment of over Rs 4 lakh as settlement fee.

The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against Pradeep Metals over the violation of SAST (Substantial Acquisition of Shares and Takeovers) regulations.

It was alleged that the company had failed to make shareholding disclosures within the stipulated timeframe during the years 2002, 2003, 2010 and 2011.

While proceedings against the company was in progress, Pradeep Metals had offered to settle the matter on payment of Rs 4,33,500 as settlement charges under Sebi's consent order mechanism.

Thereafter, Sebi's High Powered Advisory Committee on consent recommended the case for settlement on the payment of the amount.

This was also approved by Sebi's panel of whole-time members, following which the company remitted the amount.

Pursuant to a settlement under Sebi's consent mechanism, the market regulator in an order dated September 16 said it is disposing of "the Adjudication proceedings initiated against the applicant (Pradeep Metals)".

Sebi said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by the firm is found to be untrue.

Under the consent mechanism, entities can seek to settle cases with the regulator after payment of certain charges and and other expenses without admission of guilt.