Ness Wadia, 4 cos settle disclosure lapses case with Sebi

Businessman Ness Wadia and four companies have settled proceedings with markets regulator Sebi in connection with his alleged failure to make timely disclosure about his arrest and sentencing by a Japanese court.

The case has been settled on a payment totalling over Rs 1 crore as settlement charges, the Securities and Exchange Board of India (Sebi) said in five separate orders.

The four firms that settled the case were Britannia Industries Ltd, Bombay Dyeing and Manufacturing Company Limited, National Peroxide Limited and Bombay Burmah Trading Corporation Limited.

Sebi agreed to settle proposed adjudication proceedings in the case after it was approached by these entities with a plea under the settlement regulations "without admitting or denying the findings of fact and conclusion of law".

"The instant adjudication proceedings initiated against the applicant ... are settled and disposed of," Sebi said in five similarly-worded settlement orders.

The regulator had conducted an examination in respect of alleged failure of Wadia in making timely disclosures to the listed companies wherein he was promoter /director / managing director, which he was required to make under the provisions of LODR (Listing Obligations and Disclosure Requirements) Regulations.

Wadia was arrested in New Chitose Airport in Japan in the month of March 2019. Subsequently, a Japanese court had sentenced him to a two-year jail term. The execution of the jail sentence was suspended for a period of five years.

However, Wadia allegedly failed to make timely disclosures regarding his arrest / detention and sentencing by the Japanese court.

These companies also allegedly failed to make timely public announcement and clarification to the stock exchanges regarding his sentencing.

The regulator had initiated the proceedings against the entities for the alleged violation of LODR Regulations.

Pending adjudication proceedings, they had offered to settle the case on payment of of settlement charges.

Wadia has paid Rs 23.41 lakh, while the four companies have paid Rs 21.67 lakh each to settle the case with the markets regulator.

Accordingly, Sebi disposed of the adjudication proceedings initiated against Wadia and the four companies.

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