Latest News | Sebi Penalises CG Power for Violating Disclosure Norms

New Delhi, Dec 23 (PTI) Capital markets regulator Sebi on Friday imposed a penalty of Rs 5 lakh on CG Power and Industrial Solutions Ltd for flouting disclosure norms.

The company has been directed to pay the fine within 45 days, according to an order passed by the Securities and Exchange Board of India (Sebi).

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In its order, Sebi noted that the company failed to make timely disclosures about the loan defaults to the exchanges in January 2020. The disclosures were made to the stock exchange on June 27, 2020 after a delay of 178 days.

Also, it failed to make the disclosure required on default of loans to exchanges on quarterly basis in the prescribed format. It made a delay of 81 days in making the disclosure for the quarter ended March 2020.

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The order came after Sebi received three Fraud Monitoring Reports (FMRs) relating to bank frauds against CG Power and Industrial Solutions. The report was forwarded to the National Stock Exchange (NSE) for examination and comments on the same.

Following the submission of the report by NSE, it was observed that there existed certain non-compliances by the company with regard to LODR (Listing Obligations and Disclosure Requirements) rules.

In a separate order, the regulator has levied a fine of Rs 3 lakh on IDBI Trusteeship Services Limited as it failed in its fiduciary duties owed to the debenture holders.

Sebi found that IDBI Trusteeship Services made a delay in updating the default details on the depository website and also made a delay in communicating breach of covenant to debenture holders.

Through such acts, IDBI Trusteeship Services has violated the provisions of code of conduct prescribed under debentures trustee rules.

The order came after the regulator had conducted an inspection for a period from April 2020 to November 2021.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)