Kay Jay settles case of takeover norm violation with Sebi

Kay Jay Leasing Ltd has settled a dispute related to violation of takeover norms with capital market regulator Sebi by paying an amount of Rs 5.34 lakh in settlement fee.
The company had allegedly failed to make requisite shareholding disclosures between 1997 and 2009 within the prescribed time frame.
In an order passed today, the Securities and Exchange Board of India (Sebi) said that the delayed compliance of the provision of Takeover Regulation is settled and the regulator "shall not initiate any enforcement action against the applicant (Kay Jay Leasing)."
Kay Jay Leasing had proposed to settle the case on payment of Rs 5.34 lakh as settlement charges under Sebi consent order mechanism.

Under consent mechanism, entities can seek to settle cases with the regulator after payment of certain charges and and other expenses without admission of guilt.
Thereafter, Sebi's High Powered Advisory Committee (HPAC) considered and recommended that the case can be settled on payment of the proposed amount.
The HPAC recommendations were also accepted by the panel of whole time members of Sebi following which the company has remitted the amount to the market regulator.
As per Sebi consent order, the regulator could take enforcement actions including reopening of the pending proceedings against Kay Jay Leasing, if any representation made by the company are discovered to be untrue.