Bombay Burmah Trading, Wadias settle matter with Sebi for Rs 2.1 crore

Bombay Burmah Trading Corporation, its promoters Nusli Wadia, his sons Ness Wadia and Jehangir Wadia, along with 14 others settled a matter with the Securities and Exchange Board of India (Sebi) for alleged violations of three regulations by paying the total settlement amount of Rs 2.13 crore.

 

Following the order, the proceedings in the matter are now settled. Wadias filed for settlement without admitting or denying the findings of fact and conclusions of law, the order noted.

 

The settlement amount was recommended by a high powered advisory committee and approved by a panel of whole-time members.

 

The order notes that there were alleged lapses in disclosures of change in shareholding and related party transactions.

 

The market regulator pointed out that Wallace Brothers Trading & Industrial was shown as a public shareholder of the company while it was a part of the promoter group.  

 

Wallace held around 8.11 per cent shares of Bombay Burmah and was not disclosed under the promoter group of the company. Further, Wallace was not shown as a related party of Bombay Burmah which was against the accounting standards of the regulations.

 

The promoters indirectly acquired the 8.11 per cent stake in December 2014 through Wallace in addition to their existing holding of 65.93 per cent. Sebi pointed out that the acquisition over the threshold of 5 per cent triggered the requirement of making an open offer, however, considering the current market price the open offer now will be disadvantageous to the shareholders.

 

The market watchdog further added that there was a delay of over 3,000 days in disclosures under the respective regulations.

 

Of the total settlement amount, Rs 31 lakh was paid by Bombay Burmah while Rs 34.7 lakh was paid by Wallace.