Tata Technologies Ltd. has settled with Securities and Exchange Board of India a case pertaining to alleged violation of guidelines on disclosure and investor protection after paying a settlement amount of Rs 25 lakh.
The order came after Tata Technologies filed a suomotu settlement application with Sebi proposing to settle 'by neither admitting nor denying any conclusions' the enforcement proceedings that may be initiated against it for the alleged violation of DIP (Disclosure and Investor Protection) guidelines.
"It is hereby ordered that any proceedings that may be initiated for the violations... are settled in respect of the applicant (Tata Technologies), the Securities and Exchange Board of India said in its settlement order passed on Sept. 27."
The company made preferential allotments multiple times during the period from Dec. 27, 2000 to March 13, 2008.
These allotments resulted in the issuance of shares to more than 49 shareholders in one financial year in violation of the SEBI's DIP guidelines.
Tata Motors Ltd., the promoter of Tata Technologies, was designated to make an offer to all existing eligible equity shareholders of Tata Technologies as on Nov. 11, 2022 to tender their shares and obtain a refund.
However, none of the eligible shareholders tendered their shares to the promoter. This was certified by an independent peer-reviewed Chartered Accountant, the order noted.
Tata Motors is listed on the BSE and the NSE.
The applicant had also filed a compounding application for breach of a certain section of the Companies Act, with National Company Law Tribunal.
NCLT had in May disposed of the compounding petition by passing an order in terms of which, compounding was approved, subject to the applicant paying compounding fees of Rs 3.42 crore.
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