Bhagyashree Leasing and Finance settles case with Sebi

Bhagyashree Leasing and Finance has settled a case with markerts regulator Sebi related to alleged violation of various capital market norms after paying a total of Rs 7.65 lakh towards settlement.
The regulator had initiated adjudication proceedings against the firm for violating DIP (Disclosure and Investor Protection Guidelines) and ICDR (Issue of Capital and Disclosure Requirements) Regulations.
It was alleged that the company had issued and allotted 5 lakh equity shares in September, 2001 on preferential basis to promoters, their relatives and friends, among others. The shares were partly paid up at the time of allotment and became fully paid up in March, 2002.

According to Sebi, as the shares were not fully paid up at the time of allotment, the firm was not in compliance with DIP Guidelines.
Bhagyashree Leasing and Finance had filed an application to settle the pending proceedings, the regulator noted in an order dated November 6.
The settlement terms proposed by the firm were considered by Sebi's High Powered Advisory Committee (HPAC), which recommended the case for settlement on payment of Rs 7.65 lakh. This was also approved by the panel of whole time members of the regulator.
Last month, the company paid the settlement amount of Rs 7.65 lakh, following which the Securities and Exchange Board of India (Sebi) disposed of the adjudication proceedings.

However, the regulator said that if any representation made by the firm in the settlement proceedings is subsequently discovered to be untrue, enforcement actions including reopening of the pending proceedings could be initiated against it.