Kolte-Patil Developers and 2 other parties reach a settlement with SEBI

Earlier this week, two parties along with Kolte Patil Developers settled a case with SEBI regarding alleged violations or listing and disclosure regulations. Kolte Patil is said to have paid a sum of Rs 42 lac while G L Vishwanath and Manasa Vishwanath have paid Rs 10 lac each. This comes in light of a decision made by the parties involved to settle the alleged violations of the LODR Regulations without admitting or denying the findings through a settlement order.

In February 2022, SEBI raised the issue via show cause notice citing Kolte Patil Developers Ltd made wrong disclosures of Related Party Transactions on three occasions in two half yearly disclosures of the financial years of 2018-19 and 2019-20. The firm also did not disclose amendments to the Memorandum of Association (MoA) and Articles of Association (AoA) within 24 hours of passing the shareholder resolution in March 2019.

Another issue raised was the fact that it failed to comply with rules pertaining to independent directors. As per LODR regulations a minimum number of independent directors are required to form an audit committee. Further, no independent director can be related to the promoter or directors of the company or its subsidiary. However, the company is said to have been in violation of these regulations as it did not have the requisite number in the audit committee and two independent directors, G L Vishwanath and Manasa Vishwanath, were directly related to each other on account of being husband and wife.

Next (GOA to introduce e-registrations for primary sales)

Kolte-Patil Developers and 2 other parties reach a settlement with SEBI

This Month

Overview

Explore

Join Us