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Sebi fines IL&FS Rs 10 lakh for disclosure lapses

IL&FS did not disclose to stock exchange the decision of its board dated July 21,2018 for raising equity capital by way of rights issue.

ET Bureau|
Sep 18, 2019, 08.14 PM IST
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BCCL
Sebi-BCCL-1200
The Securities and Exchange Board of India has imposed a penalty of Rs 10 lakhs on Infrastructure Leasing & Financial Services(IL&FS) for non-disclosure of price sensitive information to stock exchanges.

The regulator said it observed that IL&FS did not disclose to stock exchange the decision of its board dated July 21,2018 for raising equity capital by way of rights issue and the decision of its board dated August 29,2018 with respect to specific asset disinvestment plan to reduce the overall debt by Rs 30,000 crore.

Sebi rules on disclosure says that a listed company is obligated to promptly inform the stock exchange of all information having bearing on the performance or operation of the listed entity, price sensitive information or any action that will affect payment of interest or dividend of non convertible preference shares or redemption of non convertible debt
securities or redeemable preference shares.

"The purpose of disclosures under the LODR(Listing obligations and disclosure requirement) Regulations is to avoid false market of such securities and to clarify the position of these securities to their respective holders. The information pertaining to its board meeting dated August 29, 2018 was present and available in public domain through the public statement released on the Noticee's website on August 29, 2018. It is understood that the requirement under the regulations in relation to disclosures is to enable disclosure of matters not necessarily publically available. Equally, for matters that are publically available, all disclosure requirements automatically stand complied with and consequently, technical filings (in the present case, separate intimation to the BSE) must be viewed bearing this in mind,"Sebi said in its order.

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