KDDL Ltd’s promoter Rajendra Kumar Saboo has settled a case related to alleged non-compliance of shareholding disclosure norms with market regulator Sebi after payment of about Rs 9 lakh as settlement fee.
Saboo’s shareholding in KKDL had allegedly increased from 9.98 per cent to 17.52 per cent during April to June 2010.
It was alleged that he had failed to make disclosures under SAST (Substantial Acquisition of Shares and Takeovers) Regulations.
The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against Saboo for the violation of SAST regulations. Pending the adjudication proceedings, he had submitted a consent application with Sebi.
Pursuant to a settlement under Sebi’s consent mechanism, the market regulator in a ruling dated September 9 said it is disposing of "the… adjudication proceedings pending in respect of the applicant (Saboo)".
While proceedings against him were in progress, he had offered to settle the matter on payment of Rs 8,96,750 as settlement charges under Sebi’s consent order mechanism.
Thereafter, Sebi’s High Powered Advisory Committee on Consent recommended the case for settlement on the payment of the amount.
This was also approved by Sebi’s panel of whole-time members, following which he remitted the amount.
Sebi said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by him is found to be untrue.
Under the consent mechanism, entities can seek to settle cases with the regulator after payment of certain charges and and other expenses without admission of guilt.