Man Industries settles forensic audit disclosure lapses case with Sebi

Man Industries (India) Ltd on Monday settled with capital markets regulator Sebi a case concerning alleged delayed and inadequate disclosure regarding the initiation of a forensic audit.

The matter was settled after the company paid Rs 8.79 lakh towards the settlement amount, according to an order passed by the Securities and Exchange Board of India (Sebi).

The order came after the company filed an application with Sebi, requesting the settlement of the adjudication proceedings initiated through a show-cause notice in August last year.

"Specified proceedings initiated against the applicant (Man Industries) vide Show Cause Notice dated August 3, 2022 are disposed of in terms... of the Settlement Regulations on the basis of the settlement terms," Sebi said in its order.

The regulator had initiated a forensic audit in respect of Man Industries for the financial years 2014-15 to 2020-21. The receipt of the intimation was acknowledged by the applicant through an email dated November 25, 2021.

After the receipt of the acknowledgement, the regulator conducted an examination for possible violation of the LODR (Listing Obligations and Disclosure Requirements) Regulations by the applicant during November-December 2021 with respect to disclosure to the exchanges regarding the initiation of the forensic audit.

Subsequently, Sebi, in its examination report, alleged that despite the receipt of the regulator's letter on November 22, 2021, the applicant made delayed and inadequate disclosure regarding the initiation of the forensic audit. Therefore, the applicant was alleged to have violated LODR rules, the order noted.