Sebi-Wadia group firms resolve issue related to non-disclosure of arrest

The three listed companies of the Wadia group on Wednesday settled a matter with market regulator Securities and Exchange Board of India (Sebi) related to the non-disclosure of scion Ness Wadia’s arrest in Japan.

Britannia Industries, the Bombay Dyeing and Manufacturing Company and the National Peroxide  agreed to pay Rs 23.4 lakh as settlement charges to Sebi.

Wadia is the promoter and non-executive director on the board of all the three companies.

“It is observed that the applicant was arrested in New Chitose Airport in Japan in the month of March 2019. Subsequently, a Japanese Court had sentenced him for a  two-year jail term,” said Sebi in an order.

The order further states companies had “allegedly failed to make timely disclosures” with regards to Wadia’s arrest and sentencing by the Japanese court as required under LODR (Listing Obligations and Disclosure Requirements) guidelines.

Sebi had issued a show cause notice to the companies in October 2019. Subsequently, the companied filed an application before the regulator to settle the matter under the so-called consent mechanism.