Ramkrishna Forgings pays Rs 5.57 lakh to settle allegations of non-disclosure of material events

The regulator's High Powered Advisory Committee (HPAC) in its meeting held on December 21, 2023, cleared the settlement terms.

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Ramakrishna Forgings has settled allegations of non-disclosure of material events with the markets regulator by paying Rs 5.57 lakh.

The settlement order, issued by the Securities and Exchange Board of India on March 19, said it started proceedings against the company for allegedly violating Regulation 30(2), 30(7) read with Regulation 30(6) and Clause 4(d) of Para A of Part A of Schedule III of Listing Obligations and Disclosure Requirements (LODR) Regulations.

These sections deal with disclosure of material events.

Also read: Buy Ramkrishna Forgings; target of Rs 888: Sharekhan

The company was issued a show-cause notice on September 5, 2023. Pending the proceedings, the company proposed to settle, without admitting or denying the findings.

Regulation 30(2) says events specified in Para A of Part A of Schedule III are deemed to be material events and listed entity shall make disclosure of such events.

Regulation 30(7) states that the listed entity shall, with respect to disclosures referred to in this regulation, make disclosures updating material developments on a regular basis, till such time the event is resolved/closed, with relevant explanations.

Regulation 30(6) gives different timelines within which different material events, depending on their nature, should be disclosed to the material events

Clause 4(d) of Para A of Part A of Schedule III deals with the outcome of meetings of the board of directors that decides on funding raising that is proposed to be undertaken.

Also read: Ramkrishna Forgings launches QIP, may raise Rs 1,000 crore; stock trades flat

SEBI’s settlement order said that after attending a meeting with the regulator’s internal committee on December 12, the company proposed settlement terms via an email.

On December 21, SEBI’s high powered advisory committee (HPAC) considered the settlement terms and recommended that the case may be settled upon payment of Rs 5.57 lakh.

The Panel of Whole Time Members of SEBI approved the HPAC recommendation on January 19 and it was communicated to the company on January 31.

The company, through an email on February 7, informed about the remittance of the settlement amount.

On March 20, the stock closed at Rs 661.35 on the National Stock Exchange, up 3.67 percent from the previous close.