Brazilian cement firm, 2 others settle case with Sebi

Brazilian cement major Votarantim Cimentos along with InterCement Austria Holding and Camargo Correa today settled a case with Sebi for alleged violation of takeover norms in the matter of Shree Digvijay Cement.
They have paid over Rs 75 lakh as settlement charges.
The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against the three companies over the violation of provisions SAST (Substantial Acquisition of Shares and Takeovers) Regulations.
It was alleged that these entities failed to comply with certain provisions of the SAST Regulations while making an open offer for acquisition of 3.67 crore shares, representing 26 per cent stake in Shree Digvijay Cement.

They acquired Gujarat-based Shree Digvijay Cement through a complex transaction in 2013 and made the open offer after a delay of 81 days.
While proceedings against the three companies were in progress, they offered to settle the matter on payment of Rs 25.5 lakh each 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 subsequently approved by Sebi's panel of whole-time members, following which they remitted the amount.
Pursuant to a settlement under Sebi's consent mechanism, the market regulator said in an order passed today that it is disposing of "the adjudication proceedings initiated against the applicant."

Sebi said the enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by them 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 or denial of guilt.