Former independent director of NESCO Ltd, Manu M Parpia, has paid Rs 21.45 lakh to settle allegations of violations of Listing Obligations and Disclosure Requirements (LODR) Regulations.
In a settlement order issued on January 1, the Securities and Exchange Board of India (SEBI) said that the regulator had conducted an examination following a report issued by Stakeholders Empowerment Services (SES).
A showcause notice dated May 28, 2024, was issued to Parpia which alleged the following:
1.The Applicant continued to serve on the Board of the Company for more than a year as an independent director even after cessation of his tenure on May 09, 2022. In view of the same, it was alleged that the Applicant had violated the provisions of Responsibilities of the Board of Directors as enshrined under Principles governing disclosures and obligations allegedly violating Reg. 4(2)(f)(ii)(2), 4(2)(f)(ii)(7), 4(2)(f)(ii)(8), 4(2)(f)(iii)(3), and 4(2)(f)(iii)(12) of the LODR Regulations.
2. Applicant had given a misleading declaration dated July 15, 2023 to the effect that he meets the criteria of independence and eligibility at the time of his appointment by the Board of the Company which is in violation of Section 149(10) of the Companies Act, 2013 and Rules framed thereunder and Regulation 16(1)(b) of the LODR Regulations
On July 3, 2024, Parpia filed a settlement application with SEBI and proposed the settlement amount.
The terms were then considered and approved by the High Powered Advisory Committee and SEBI's Panel of Whole-time Members.
On December 30, Parpia informed the regulator that the settlement amount had been credited.
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