Sebi settles case against Fortis Healthcare Holdings

Fortis had filed for settlement under Sebi's consent order mechanism "in respect of the change in its shareholding in Fortis Healthcare Ltd pursuant to its rights issue in the year 2009

The Securities and Exchange Board of India (Sebi) has settled a case against Fortis Healthcare Holdings, a promoter group company of Fortis Healthcare Ltd, after the entity made a payment of Rs 5.85 lakh to settle charges of alleged delay in compliance with the market regulator’s disclosure norms.

Fortis had filed for settlement under Sebi’s consent order mechanism “in respect of the change in its shareholding in Fortis Healthcare, pursuant to its rights issue in 2009”.  

In an order on Friday, Sebi said charges of delay in compliance by Fortis “is settled as per consent terms and Sebi shall not initiate any enforcement action against the applicant (Fortis) for the said delay in compliance”.

As per the regulator, Fortis had proposed an amount of Rs 5.85 lakh "to settle any anticipated proceedings" for the non-compliances, in February, this year.

Thereafter, Sebi's High Powered Advisory Committee (HPAC) recommended that the matter may be settled on the payment of the amount offered by Fortis. This was also approved by the panel of whole time members of Sebi, following which the company remitted the amount last month.

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