You are here: Home » PTI Stories » National » News
Business Standard

SIS India pays Rs 36 lakh to settle case with Sebi

Press Trust of India  |  New Delhi 

Security and Intelligence Services (India) Thursday settled with Sebi a case of alleged violation of public issue norms by paying over Rs 36 lakh towards settlement charges.

The regulator had initiated proceedings and sent notice to the firm in April 2017 wherein it was alleged that Security and Intelligence Services (SIS) had issued and allotted equity shares to more than 49 persons on nine occasions from April 1988 till February 2012 (mostly to its employees) due to preferential allotment or stock options.

Under the Companies Act, a issue is deemed to be a public issue if it is allotted to more than 49 persons.

"In view of the allotment of shares...which shall be deemed to be a public offer/issue, it was alleged that the Noticee (SIS) had failed to comply with various statutory/ regulatory requirements pertaining to a public issue," the regulator said.

The firm allegedly violated DIP (Disclosure and Investor Protection) Guidelines and ICDR (Issue of Capital and Disclosure Requirements) regulations, Sebi said.

However, while the adjudicating proceedings were pending, the firm filed application under settlement mechanism and proposed to pay Rs 36.56 lakh as settlement charges in February 2019.

The amount was approved by the panel of whole-time members of Sebi, the regulator said.

Subsequently, the firm remitted the amount and Sebi thereby disposed of the adjudication proceedings initiated against SIS.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 30 2019. 19:45 IST
RECOMMENDED FOR YOU