Capital market regulator SEBI has penalized four entities, Alliance Infrastructure Project Pvt Ltd, Ashna Realtors, RMG Developers, and Narendra Infrastructure Chennai for delayed or non-submission of financial results.
The regulator has imposed a fine of Rs 1 lakh on each of the four entities.
The Securities and Exchange Board of India (SEBI) initiated adjudication proceedings under section 15A(b) of SEBI Act, 1992 the four entities and sent show-cause notices to show cause as to why an inquiry should not be held and penalty not be imposed against them for the aforesaid alleged violations.
SEBI received a letter dated September 19, 2019, from Vistra ITCL (India) Limited, a SEBI registered Debenture Trustee, stating that the notices have not complied with the norms with respect to financial results for the financial year March 31, 2019. It was observed that notices had issued NCDs on a private placement basis, said the order copy.
The security market regulator also asked BSE and NSE through email dated September 23, 2019, to provide the compliance status of the notices with respect to financial results for the year ended March 31, 2019.
The order said that, BSE through its email dated June 12, 2020, informed that Alliance Infrastructure Project Pvt Ltd submitted its financial results for March 31, 2019, on February 19, 2020.
The financial results for the half-year ended March 31, 2019, were required to be filed by May 15, 2019, and the same was filed on February 19, 2020. Therefore, there was a delay of 280 days in the submission of financial results for the FY ended March 31, 2019.
Further, BSE also informed the regulator that Ashna Realtors, RMG Developers, and Narendra Infrastructure Chennai have not submitted the financial results for the year ended March 31, 2019.
The order noted that “timely disclosure of financial results and other necessary information is essential for investors to be adequately informed regarding the status of investments in terms of performance of the company, its repayment capability, credit rating, timely payment of interest, etc.”
“Nonsubmission of such disclosures in a timely manner is detrimental to the interest of investors and debenture holders and vitiates confidence in the securities markets,” it said.