Markets regulator Sebi on Monday disposed of adjudicating proceedings initiated against ABG Shipyard, for allegedly not making requisite disclosure under the Listing norms, as the company is under liquidation.
In an order, the Securities and Exchange Board of India (Sebi) noted that it is mandatory and a pre-condition to obtain the leave of NCLT for commencing instant proceedings against the company, which is under liquidation.
However, the regulator said leave of NCLT has not been taken in the instant proceedings.
"The adjudication proceedings against the noticee (ABG Shipyard) have been initiated on August 8, 2019 which is after the order of commencement of liquidation dated April 25, 2019 and without the leave of the NCLT," Sebi said.
Accordingly, the regulator said the "adjudication proceedings initiated against the noticee vide order dated August 8, 2019 and SCN dated October 18, 2019 are infructuous and therefore, cannot be proceeded with. The matter is, accordingly, disposed of."
The markets watchdog examined the status of compliance with the provisions of Listing Obligations and Disclosure Requirements or LODR by ABG Shipyard and observed that it did not make requisite disclosure under the regulations.
Consequently, Sebi appointed an adjudicating officer on August 8 to inquire into the matter and show cause notice was issued on October 18.
ABG Shipyard owes about Rs 17,000 crore to the lenders and the shipbuilder was referred by the Reserve Bank of India for bankruptcy resolution.
Incorporated in 1985, ABG Shipyard is the flagship company of ABG Group with interests in shipping and cement sectors.