Emmbi Industries settles case with Sebi for Rs 12.35 lakh on corporate governance charges

Emmbi Industries settles case with Sebi for Rs 12.35 lakh on corporate governance charges

The Securities and Exchange Board of India (Sebi) has approved the settlement application of Emmbi Industries Limited after the company agreed to pay a settlement amount of Rs 12.35 lakh for alleged violations of corporate governance and disclosure norms.

According to Sebi’s show-cause notice dated December 28, 2023, the company had allegedly shown a person as an independent director in its Corporate Governance Report while simultaneously classifying him as part of the promoter and promoter group in the Shareholding Pattern Report.

While the adjudication proceedings were pending, Emmbi Industries filed a settlement application on February 2, 2024, seeking to resolve the matter “without admitting or denying” the findings. Sebi order issued by Adjudicating officer Jai Sebastian, noted, “Pending adjudication proceedings, Applicant proposed to settle the instant proceedings initiated against it, without admitting or denying the findings of facts and conclusions of law, through a settlement order and accordingly filed a settlement application dated February 02, 2024 with SEBI” as per Sebi (Settlement Proceedings) Regulations, 2018.

The matter was reviewed by Sebi’s Internal Committee and subsequently by the High-Powered Advisory Committee (HPAC). Following the HPAC’s recommendation, the Panel of Whole-Time Members of Sebi approved the settlement terms. The company remitted the settlement amount on October 11, 2025, and the regulator confirmed receipt of funds.

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Sebi noted that the settlement order is without prejudice to its right to reopen the case if it is later found that the company made false representations or violated any undertakings given during the settlement process.