Digjam promoters settle case with Sebi; pay Rs 13.27 lakh

Four promoters of textile firm Digjam have settled the matter related to delay in compliance of disclosure rules with market regulator Sebi after a payment of Rs 13.27 lakh as settlement charges.

As per Sebi, Digjam promoters -- Janardhan Trading Co, Central India General Agents, Birla Holdings and Sukriti Education Society -- had failed to make timely disclosures to the stock exchanges regarding an increase in their voting rights in the company.

They approached the Securities and Exchange Board of India to settle the case under the regulator's consent order mechanism. The entities had proposed to pay Rs 13,27,500 as settlement charges.

Accepting the proposed settlement terms, Sebi in an order issued on December 31 said that "the delayed compliance" with the norms "is settled according to the consent terms and Sebi shall not initiate any enforcement action against the applicants for the said default".

The four promoters had admitted that there was a delay of 101 days in filing requisite disclosures, the order said.

According to them, on account of non-payment of dividend by Digjam, voting rights accrued upon applicants with respect to 14.94 lakh preference shares increased their voting rights from 33.92 per cent to 42.72 per cent of the paid up capital of the company, it added.

The settlement has been approved by Sebi's High Powered Advisory Committee (HPAC) and panel of whole time members.

In case any representations made by the entities are found to be untrue, then enforcement action could be initiated.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi must not be lax in weeding out mutual fund houses

    Last May, capital market regulator Securities and Exchange Board of India (Sebi) amended the Sebi (mutual funds) regulations, 1996, directing all fund

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

New model for effective education

After interacting with students and teaching community on a ...

Rajgopal Nidamboor

Let the spirit of sport pervade everyday life

Sport, like meditation, is nothing short of a spiritual act. ...

Shona Adhikari

Pop art is truly a feast for the eyes

The internationally reknowned Bruno Art Group’s presence in India had ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture