New Delhi, Capital markets regulator Sebi on Friday imposed a fine of Rs lakh on Reliance Home Finance for failing to make disclosures related to the NCL order issued to stock exchanges in June 2021.
The Securities and Exchange Board of India (SEBI) said the fine will have to be paid within 45 days.
SEBI, in its order, said that Reliance Home Finance has not disclosed in respect of the NCLT order dated June 21, 2021 and has also not disclosed information in respect of the appeal filed by it and Bank of Baroda against the NCLT order.
As per the NCLT order, Reliance Home Finance was directed to pay interest at the contract rate on the debentures within two months, calculated till realization and thereafter redeem the debentures on payment of principal in three months Was.
According to the order, the outstanding amount due and payable in respect of secured non-convertible debentures (NCDs) was more than Rs 2,850 crore.The company was required to make disclosures under SEBI's LODR (Listing Obligations and Disclosure Requirements Rule) within 24 hours of the passing of the order.
“The noticee (Reliance Home Finance) cannot be exempted from making disclosures because the same was disclosed in the annual report or information/event details being covered by the media or various websites.
"This cannot be considered as... compliance with the provisions of the LOD Regulations, 2015... as the required disclosures should have been made by the issuer of the notice to the exchanges," Sebi said.
Additionally, the firm has delayed disclosure in respect of information regarding its debt resolution plan – invitation of expression o interest bids on July 29, 2020, and approval of the resolution plan on June 19, 2021.
The disclosures were to be made before July 30, 2020 and June 20, 2020 respectively.However, the company had disclosed the two incidents to the exchanges on July 31, 2020 and June 21, 2021, respectively, with a delay of one day for each incident.
Accordingly, the regulator has imposed a penalty of Rs 8 lakh on the noticee for violation of the provisions of "Section 2 of the LODR Regulations, 2015 read with the Listing Agreement."
The Securities and Exchange Board of India (SEBI) said the fine will have to be paid within 45 days.
SEBI, in its order, said that Reliance Home Finance has not disclosed in respect of the NCLT order dated June 21, 2021 and has also not disclosed information in respect of the appeal filed by it and Bank of Baroda against the NCLT order.
As per the NCLT order, Reliance Home Finance was directed to pay interest at the contract rate on the debentures within two months, calculated till realization and thereafter redeem the debentures on payment of principal in three months Was.
According to the order, the outstanding amount due and payable in respect of secured non-convertible debentures (NCDs) was more than Rs 2,850 crore.The company was required to make disclosures under SEBI's LODR (Listing Obligations and Disclosure Requirements Rule) within 24 hours of the passing of the order.
“The noticee (Reliance Home Finance) cannot be exempted from making disclosures because the same was disclosed in the annual report or information/event details being covered by the media or various websites.
"This cannot be considered as... compliance with the provisions of the LOD Regulations, 2015... as the required disclosures should have been made by the issuer of the notice to the exchanges," Sebi said.
Additionally, the firm has delayed disclosure in respect of information regarding its debt resolution plan – invitation of expression o interest bids on July 29, 2020, and approval of the resolution plan on June 19, 2021.
The disclosures were to be made before July 30, 2020 and June 20, 2020 respectively.However, the company had disclosed the two incidents to the exchanges on July 31, 2020 and June 21, 2021, respectively, with a delay of one day for each incident.
Accordingly, the regulator has imposed a penalty of Rs 8 lakh on the noticee for violation of the provisions of "Section 2 of the LODR Regulations, 2015 read with the Listing Agreement."
