November 10, 2018:
On Friday, the debt-laden Reliance Communications has settled a case with markets regulator SEBI over non-compliance with listing norms, including alleged failure to promptly inform about interest payment default on debentures.
The company, part of the Anil Ambani group, also settled the issue of non-cooperation with the credit rating agencies & debenture trustee that were in violation of listing norms.
In an order on Friday, SEBI said the case has been settled after payment of Rs. 62.40 lakh towards settlement charges.
The order stated, "The proceedings that could have been initiated for the defaults are settled qua the applicant."
It also noted that SEBI shall not initiate any enforcement action against the applicant.
The order came after RCom filed a suo-moto application with SEBI to settle the case.
Under the settlement mechanism, an entity is allowed to settle charges by paying a penalty without admission or denial of guilt.
One of the issues was about not informing the default in payment of interest/ principal to the debenture trustee promptly.
Another issue pertained to non-submission of information with respect to change in credit rating & not sending notices relating to the meetings of Non Convertible Debentures (NCD) holders to the debenture trustee.
The authorized representatives of the company had a meeting with the internal committee of SEBI in March 9, wherein the settlement terms were deliberated as per the order.
Thereafter, Sebi's High Powered Advisory Committee recommended the case for settlement on the payment of the Rs. 62.40 lakh by the applicant and the the same was approved by the regulator's panel of whole-time members.
Accordingly, Securities & Exchange Board of India (SEBI) has disposed of the adjudication proceedings initiated against Rcom.
That enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by it is found to be untrue.
Picture Source :
