Sebi penalises Reliance Home Finance Rs 8 lakh for violation of LODR Regulations

ITSL had filed the petition seeking NCLT's direction to RHFL to redeem secured non-convertible debentures and make related payments, including principal amount and interest, that totalled to more than Rs 2,850 crore.

While the company had disclosed the filing of the petition to the exchanges, it had not disclosed the NCLT direction asking it to pay the interest and principal for redemption of the debentures. It had also not disclosed it and Bank of Baroda (as the lead bank on behalf of inter-creditor agreement lenders) disputing the order by filing an appeal before the National Company Law Appellate Tribunal (NLAT).

The Sebi order noted the company's materiality policy that requires transactions whose value exceeds 10 percent of the gross income of the company to be reported to the exchange. As of FY21, the company's gross income was Rs 162 crore. Therefore, the amount with respect to the NCDs was above the materiality treshold.

With regard to the ICA, the Sebi order noted a delay in reporting invitation of expression of interest bid, and approval of resolution plan.

The invitation was sent out via newspapers on July 29, 2020; and the approval for the resolution plan was granted on June 19, 2021. These had been disclosed by July 30, 2020; and June 20, 2021 respectively. But the company made the disclosures on July 31, 2020, and June 21, 2021, respectively.