National Oilwell Varco pays Rs 6.8 lakh to settle case with Sebi

US-based National Oilwell Varco Inc Friday settled with Sebi a probe for alleged delay in complying with minimum public shareholding norms in GMM Pfaudler by paying Rs 6.8 lakh as settlement charges.

Due to open offer in 2013, the total promoter shareholding (including National Oilwell) changed to 76.66 per cent in GMM Pfaudler, which indicated that public holding was not at least 25 per cent as mandated under minimum public shareholding norms, the regulator said.

To bring down the shareholding to 75 per cent, offer of sale for 1.66 per cent (2,42,472 shares) was made which was completed in December 2014.

It was alleged that shareholding was not brought down within the stipulated time, hence it was in violation of SAST (Substantial Acquisition of shares and Takeovers) norms.

Following which the regulator initiated adjudication proceedings against National Oilwell.

While the proceedings were pending, the firm filed an application in September 2018 under consent mechanism to settle the case without admission or denial of the guilt.

The company in its meeting with the regulator's internal committee in October 2018 proposed to pay Rs 6.80 lakh towards settlement charges.

The amount was approved by the panel of whole-time members of Sebi, the regulator said in an order.

Accordingly, Securities and Exchange Board of India (Sebi) said "this settlement order disposes off... the adjudication proceedings initiated against National Oilwell Varco", Sebi said in an order dated February 22.

Enforcement actions, including restoring or initiating the proceedings, could be initiated if any representation made by them is found to be untrue, Sebi said.