Spandana Sphoorty Financial Ltd. Settles With SEBI For Rs 38 Lakh Over Disclosure Violations
The Securities and Exchange Board of India (SEBI) has recently concluded an investigation into Spandana Sphoorty Financial Ltd. (SSFL), a non-banking financial company. The settlement follows allegations of violations related to disclosure and listing regulations under SEBI's oversight. The investigation focused on breaches of the SEBI (Listing Obligations and Disclosure...
The Securities and Exchange Board of India (SEBI) has recently concluded an investigation into Spandana Sphoorty Financial Ltd. (SSFL), a non-banking financial company. The settlement follows allegations of violations related to disclosure and listing regulations under SEBI's oversight.
The investigation focused on breaches of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations). SEBI alleged violations of Regulation 51(1) and 51(2), which pertain to the disclosure of financial information and other material events, and Regulation 51(3), related to continuous disclosure obligations.
On January 4, 2024, SEBI issued a show-cause notice to SSFL. The company was asked to justify why penalties should not be imposed under Sections 15A(b) and 15HB of the SEBI Act which deal with penalties for non-compliance with regulatory provisions.
In response to these proceedings, SSFL opted for a settlement rather than contesting the charges. SSFL submitted a settlement application to SEBI and proposed a resolution to the matter without admitting or denying the allegations. This application was processed under SEBI (Settlement Proceedings) Regulations, 2018.
Subsequently, SEBI's High Powered Advisory Committee (HPAC) reviewed the proposed settlement terms and recommended a payment of INR 38,12,160/-. The committee's recommendation was approved by SEBI's Panel of Whole Time Members.
The settlement order stipulates that the adjudication proceedings against SSFL are resolved based on the settlement terms. This resolution is made under Section 15JB of the SEBI Act and Regulation 23(1) of the Settlement Regulations which govern the terms and enforcement of such settlements.
While the settlement effectively closes the current investigation, SEBI retains the right to take further action if it discovers that SSFL has not fully complied with the settlement terms or has violated any undertakings.