JM Financial And Six Others Settle With SEBI, Pay Over Rs 23 Lakh In Regulatory Violation Case
Seven entities, including JM Financial Ltd and six individuals, have collectively paid a settlement amount of a little over Rs 23 lakh to the Securities and Exchange Board of India (SEBI) to resolve a case concerning alleged violations of various regulations. According to SEBI's order dated May 21, 2024, JM Financial Ltd has paid Rs 15 lakh as a settlement fee, while six individuals...
Seven entities, including JM Financial Ltd and six individuals, have collectively paid a settlement amount of a little over Rs 23 lakh to the Securities and Exchange Board of India (SEBI) to resolve a case concerning alleged violations of various regulations.
According to SEBI's order dated May 21, 2024, JM Financial Ltd has paid Rs 15 lakh as a settlement fee, while six individuals have collectively paid Rs 8.12 lakh towards the settlement charges.
The allegations against the applicants spanned violations of delisting rules, disclosure norms, and provisions of the Companies Act. The violations included contraventions of Regulation 10(4)(c) of Delisting Regulations 2021, Regulation 25(5) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and various other provisions.
SEBI initiated adjudication proceedings against the applicants under section 15HB of the SEBI Act, 1992. A Show Cause Notice (SCN) was issued on May 25, 2023, calling upon the applicants to show cause why an inquiry should not be held and penalties not be imposed for the alleged violations.
However, before the adjudication proceedings concluded, the applicants proposed to settle the matter without admitting or denying the findings of facts and conclusions of law. They filed settlement applications with SEBI in accordance with the provisions of SEBI (Settlement Proceedings) Regulations, 2018.
SEBI's High Powered Advisory Committee (HPAC) recommended settling the matter upon payment of the settlement amount.
The Panel of Whole Time Members of SEBI approved the settlement recommendations, and the applicants remitted the settlement amounts accordingly. Consequently, SEBI disposed of the adjudication proceedings initiated against the applicants in terms of the settlement regulations.