Sebi penalises individual for not complying with summons in HAL case

NewsDrum Desk
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New Delhi, Jun 7 (PTI) Sebi on Friday imposed a fine of Rs 20 lakh on Rajat Mishra for failing to comply with the summons issued by the authority in a matter pertaining to violation of market norms while dealing in Hindustan Aeronautics Ltd's (HAL) shares.

The regulator has directed the individual (Rajat Mishra) to pay the amount of penalty within 45 days.

The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against Mishra for the alleged violation of the regulatory norms.

Thereafter, a show cause notice was issued by Sebi to Mishra on May 8, 2024.

"I note ...that the investigation report in the matter records that failure to furnish information and failure to appear in person before the Investigating Authority (IA) by the entity (Mishra) has hampered the investigation process and shows his callous attitude and complete disregard to the regulator," Sebi's Adjudicating Officer Amar Navlani said in an order.

Accordingly, the regulator penalised Mishra for flouting the Sebi norms.

In a separate order, the markets watchdog imposed a penalty of Rs 7 lakh on Majestic Auto Ltd for flouting the disclosure rules.

Sebi had conducted an examination in respect of Majestic Auto Ltd (MAL). After the examination, the regulator observed that Majestic Auto had allegedly violated provisions of Listing Obligations and Disclosure Requirements (LODR) rules.

"I note that the noticee (Majestic Auto) had neither denied nor disputed that Emirates Technologies Pvt Ltd (ETPL) was a related party to the noticee and that the transactions with ETPL during FY 2018-2019; 2019-2020 and April-May 2020 were related party transactions," Navlani said in the order.

Further, Sebi noted that MAL had failed to demonstrate that prior approval of audit committee was obtained and that shareholders' approval was obtained for material related party transaction during FY 2018-19.

Therefore, Majestic Auto had violated LODR regulations. PTI HG HG ANU ANU