Coffee Day Enterprises: Coffee Day Enterprises has paid Rs 69 lakh to settle the matter with SEBI.
Coffee Day Enterprises: Coffee Day Enterprises has paid Rs 69 lakh to settle a case related to alleged violation of disclosure norms with the Securities and Exchange Board of India (SEBI). After issuing the show cause notice, the company had filed an application on February 18 this year for settlement under the SEBI (Settlement Proceedings) Regulations, 2018.Also Read – Margin Rule To Change From Today: 100 percent margin rule implemented from today, know why SEBI changed it?
One of the allegations against the company was that no limited review reports were placed before the Board of Directors in the meetings of November 13, 2019 and January 29, 2020, which ended on June 30, 2019 and September 30, 2019 respectively. The financial results for the preceding quarters were approved. Also Read – Capital market will play a big role in financing economic growth: SEBI chief
In addition, the company presented unaudited financial results for the quarters ended June 30, 2019 and September 30, 2019, but were not subject to limited review by its statutory auditors. Also Read – Investment advisors cannot manage funds, securities on behalf of their clients: SEBI
“The notice was therefore alleged to be in contravention of Regulations 33(3)(c)(i) and 33(3)(h) of the LODR Regulations,” it said.
Another allegation was that on January 23, 2020, the company disclosed to the stock exchanges that they had entered into definitive agreement to sell Way2Wealth Securities Pvt Ltd to Shriram Ownership Trust, subject to winding up conditions and necessary statutory conditions .
“However, the details of sale of Way2Wealth as prescribed in SEBI’s circular no. CIR/CFD/CMD/4/2015 dated September 9, 2015 were not disclosed by the company,” the settlement order said.
On inquiry, the company running the Cafe Coffee Day chain claimed that the details of the sale of Way2Wealth were emailed to the stock exchange on January 31, 2020. However, NSE clarified that the company has not entered the details on the dedicated NEAPS portal of the filing.
Subsequently, the company informed that it had uploaded the details of the sale of Way2Wealth to the stock exchanges as on August 31, 2020 and the same was not uploaded earlier, as the company is yet to obtain final approval from the statutory regulators and complete the sale process. Was supposed to inform after.
It said, Coffee Day Enterprises Limited made a payment of Rs 69,06,250 towards settlement amount through RTGS fund transfer on August 27, 2021, as per the settlement terms approved by the panel of whole time members.
The SEBI order said that after the settlement, the pending judicial proceedings initiated against Coffee Day Enterprises Limited have been disposed of.