Kalyani Investment Settles Disclosure Norm Violation With SEBI For Rs 1.12 Crore

Kalyani Investment Co., a promoter group entity of Bharat Forge, has reached a settlement with SEBI regarding an alleged breach of disclosure norms by paying a settlement fee of Rs 1.12 crore.

Kalyani Investment Co., a listed company, is part of the Kalyani Group, valued at over $2.5 billion.

The settlement was reached after Kalyani Investment proposed to resolve the ongoing proceedings initiated against it, without admitting or denying the facts and legal conclusions, in accordance with SEBI's settlement regulations.

"In view of the acceptance of the settlement terms and the receipt of the settlement amount, the adjudication proceedings initiated against the applicant (Kalyani Investment Company) vide show cause notice dated March 19, 2024, is disposed of," SEBI's adjudicating officer Amit Kapoor said in the settlement order on Friday.

The Securities and Exchange Board of India initiated adjudication proceedings against the applicant for the alleged violation of Securities Contracts (Regulation) Act rules and disclosure norms.

Thereafter, SEBI issued a show cause notice on March 19, 2024, to KICL.

The SCN alleged that the applicant failed to place the summary of the related-party transaction entered between the KICL and Kalyani Steels Ltd on March 27, 2014, before its audit committee concerning purchase of Non-Cumulative Optionally Convertible Preference Shares of Lord Ganesha Minerals Pvt.

Further, it alleged that the applicant failed to take prior approval of its audit committee for the related-party transaction entered between applicant and KSL on Sept. 16, 2015, with respect to purchase of NCOCPS of LGMPL.

SEBI also found that Kalyani Investment Co. allegedly failed to present a summary of the related party transaction between KICL and KSL to its audit committee, specifically regarding the Inter Corporate Deposits advanced by KICL to KSL between Dec. 27, 2013, and March 19, 2014.

Following the submission of the settlement application, Kalyani Investment revised the settlement terms, agreeing to pay Rs 1.12 crore as settlement charges.

These revised terms were approved by SEBI’s High Powered Advisory Committee, which recommended the settlement of the case.

(With PTI Inputs)