Capital market regulator Sebi has settled a case of violation of disclosure norms against AAR KAY Steel Products after the company paid an amount of nearly Rs 7 lakh as settlement fee.
Passing a consent order, Securities and Exchange Board of India (Sebi) said that "this settlement order disposes of the adjudication proceedings initiated against the applicant (AAR Kay Steel)".
AAR Kay Steel, a company listed on the Delhi Stock Exchange (DSE), had allegedly failed to make disclosures with regard to its shareholding pattern for the years 1998-2011, within the prescribed time limit.
Accordingly, the regulator had issued a show cause notice to company with regard to the alleged violations.
Pending proceedings, the company had proposed to settle the case against it under Sebi consent order mechanism and offered to pay Rs 6.92 lakh as settlement charges.
Thereafter Sebi's High Powered Advisory Committee considered and recommended that the case can be settled on payment of the proposed amount following which the company made the payment.
Sebi said it could take enforcement actions including reopening of the pending proceedings against AAR KAY Steel, if any representation made by the company are found to be untrue.
