SQS Software, others settle cases with Sebi; pay Rs 6.7 lakh

SQS Software Quality Systems AG has settled a case related to delayed compliance of takeover norms with markets regulator Sebi on payment of Rs 2 lakh towards settlement charges.

Separately, Baron Emerging Markets Fund and its three related entities as well as one Sucharitha Reddy also settled delayed compliance of takeover norms with the regulator on payment of Rs 2 lakh and over Rs 2.7 lakh towards settlement charges, respectively.

"The proceedings that could have been initiated for the defaults ... are settled qua the applicants," Sebi said in three separate orders dated November 9.

It also noted that Sebi will not initiate any enforcement action against the applicants.

The order comes after SQS Software Quality Systems AG, Germany, four entities related to Baron -- Baron Emerging Markets Fund, Baron Emerging Markets Fund Ltd, Baron Emerging Markets Collective Investment Fund and Baron International Growth Fund and Reddy -- filed applications with Sebi to settle the cases under settlement mechanism.

Under the settlement mechanism, an entity is allowed to settle charges by paying a penalty without admission or denial of guilt.

It was alleged that these entities had made delayed compliance provisions of SAST (Substantial Acquisition of Shares and Takeovers) Regulations.

As per the orders, the authorised representatives of these entities had separate meetings with internal committee of Sebi for deliberation of settlement terms.

Thereafter, Sebi's High Powered Advisory Committee recommended the cases for settlement on payment of Rs 2 lakh each for SQS Software and four Baron entities, besides Rs 2.7 lakh for Reddy and the same was approved by the regulator's panel of whole-time members. Following these, the entities remitted the amount.

Accordingly, Securities and Exchange Board of India (Sebi) has disposed of the adjudication proceedings initiated against these entities.

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