Parnax Lab settles case with Sebi, pays over Rs 10 lakh

Pharmaceutical company Parnax Lab has settled proceedings with markets regulator Sebi in connection with alleged violation of listing norms on payment of over Rs 10 lakh towards settlement charges.

The order came after the company approached the Securities and Exchange Board of India (Sebi) proposing a settlement to pay a penalty without admission or denial of guilt.

"The proposed adjudication proceedings for the alleged default ... are settled qua the applicant (Parnax Lab Ltd)," Sebi said in a settlement order dated November 9.

It further said that Sebi will not initiate any enforcement action against the firm for the default.

The regulator had initiated adjudicating proceedings against Parnax Lab for alleged "violation ... of Listing Agreement read ... with Securities Contracts (Regulation) Act".

The firm had filed an application for settlement while the adjudication proceedings were initiated by the regulator for alleged violations.

The settlement terms proposed by the firm were considered by Sebi's High Powered Advisory Committee (HPAC), which recommended the case for the settlement on payment of Rs 10.44 lakh. This recommendation was also accepted by the panel of whole-time members of Sebi.

Following this, the firm paid the settlement amount and accordingly, the regulator has settled the case.

In a separate order, Sebi has imposed a fine of Rs 1.5 lakh on Cressenda Solutions for failing to comply with the markets regulator's direction by not conducting the audit of records and systems of Sharepro Services.

The regulator, through an order in March 2016, had asked firms, who are clients of Sharepro, to conduct a thorough audit of the records and systems of Sharepro with respect to dividends paid and transfer of securities to determine whether dividends have been paid to beneficial holders and whether securities have been transferred as per the provisions of law.

"The noticee (Cressenda Solutions) had failed to comply with the directions in the Sebi order dated March 22, 2016 by not conducting an audit of the records and systems of Sharepro," Sebi said.