Sebi fines Rs 7 lakh on Shapoorji Pallonji for violating disclosure rules

Capital markets regulator Sebi has imposed a penalty of Rs 7 lakh on Shapoorji Pallonji and Company for flouting disclosure norms.

In its order, Sebi found that Shapoorji Pallonji and Company did not take prior approval from the stock exchange for converting non-convertible debentures (NCDs) into a term loan way back in March 2021.

Also, it failed to submit auditor's certificate on utilization of funds, half yearly certificate on maintenance of asset cover and annual report to the debenture trustee, the Securities and Exchange Board of India (Sebi) said in its 64-page order passed on Thursday.

Additionally, the company had not updated certain information on its website as required under the Listing Obligations and Disclosure Requirements (LODR) Regulations.

Those details are pertaining to notice of meeting of the board of directors where financial results would be discussed; financial results; complete copy of the annual report after FY 2019-20; information, report, notices, call letters, circulars, proceedings, concerning NCRPS or NCDs; and all information and reports including compliance reports filed by the listed entity.

By not making such disclosures, the company violated the provisions of LODR rules and accordingly, Sebi imposed a "penalty of Rs 7 lakh on the noticee viz. Shapoorji Pallonji and Company Pvt. Ltd".

The regulator received a letter from Shapoorji Pallonji and Company in July 2021 informing Sebi that it had converted its listed NCDs to term loan on March 31, 2021 in accordance with a One Time Resolution (OTR) plan executed between the company and its lenders.

Following this, an examination was carried out by Sebi in order to examine the compliance status of LODR rules by the company.