market regulator Securities and Exchange Board of India (SEBI) on Monday penalized the erstwhile Essar Steel India Ltd, now known as ArcelorMittal India Pvt Ltd, for failure to make disclosures in respect of issuance of non-convertible debentures.
SEBI imposed fine in 35 page order 2 lakh on Essar Steel India Pvt Ltd for disclosure omission.
While determining the penalty, the regulator noted that there is no evidence to indicate that the violations were repetitive in nature which is considered as a mitigating factor.
In view of this, it said that it pertains to insolvency proceedings before the Supreme Court.
“…the enforcement of this order shall be subject to the outcome of appeals before the Hon’ble Supreme Court in Monnet Ispat & Energy Limited, Alok Industries Limited and Raj Oil Mills Limited,” SEBI said in the order on Monday. ,
The appeal was filed by SEBI against the decision of the Securities Appellate Tribunal (SAT) which held that the regulator cannot initiate action against a company whose resolution plan has already been approved.
The company was acquired through an insolvency resolution process. Its management was transferred to ArcelorMittal India Pvt Ltd in December 2019.
While Essar Steel India Limited was admitted to insolvency proceedings in August 2017, the alleged violations related to disclosure took place during the period from December 2015 to March 2019.
download
The app will get 14 days of unlimited access to Mint Premium absolutely free!