New Delhi, Feb 13 (PTI) Four individuals on Tuesday settled with markets regulator Sebi a case of alleged failure to perform their duty as members of the audit committee after paying over Rs 42 lakh collectively towards the settlement amount.
Individually, DVR Prakash Rao, T Manisriram and retired justice S Jagadeesan paid Rs 11.05 lakh each and T Radhakrishnan remitted Rs 9.42 lakh for settling the case, the regulator said.
The rulings came after the persons approached Sebi proposing to settle the instant proceedings initiated against them for the alleged violation of LODR (Listing Obligations and Disclosure Requirements) rules in the matter of Binny Ltd "without admitting or denying the findings of facts and conclusions of law" through settlement orders.
"The instant adjudication proceedings initiated against the noticee vide SCN (show cause notice)...dated January 30, 2023, is disposed of in terms of...the Settlement Regulations," according to four settlement orders passed by the Securities and Exchange Board of India (Sebi).
It was alleged that the four persons failed in their duty as members of the audit committee to perform the duties specified under LODR Regulations.
As per the orders, Rao, who was a non-executive independent director of the company, allegedly did not exercise any diligence regarding the related party transactions or advances granted by the company. It was alleged that he failed to act independently in the interests of the shareholders and only acted as per the directions of the management.
S Jagadeesan, being an independent director of the company, did not act independently in the interests of shareholders, but merely acted on the directions of the firm and its executive management, the orders noted.
T Manisriram, being an independent director of the firm, did not understand any financial decisions taken by the company and was allegedly only acting at the behest of the company and its executive management.
T Radhakrishnan, who was a non-executive independent director of the company, did not question the board about the validity of the various transactions undertaken by the company, nor did he exercise any diligence when the company placed matters before the board for mere ratification or approval, as per the orders. PTI SP SP BAL BAL