NEW DELHI: Capital markets regulator Sebi on Tuesday imposed a penalty of Rs 9 lakh on BGR Energy Systems for disclosure lapses to the inventory exchanges and flouting different market norms. The order got here after the Securities and Exchange Board of India (Sebi) performed an examination within the matter of BGR Energy Systems Ltd (BGR) listed on the BSE and NSE.
The investigation was to establish whether or not there was any violation of the provisions of LODR (Listing Obligations And Disclosure Requirements) rules by BGR Energy Systems.
During the examination, the regulator noticed that BGR had allegedly didn’t adjust to the provisions of disclosure norms and numerous Sebi guidelines.
Thereafter, the market watchdog initiated adjudication proceedings in opposition to the noticee (BGR Energy Systems) and issued a show-cause discover to the corporate on August 2, 2024.
The regulator noticed that BGR has admittedly uploaded the audited monetary statements of its subsidiary corporations viz, BGR Boilers Pvt Ltd and BGR Turbines Company Pvt Ltd for FY 2022-23 with delay.
The firm was required to add the monetary statements at the very least 21 days previous to the date of the annual common assembly referred to as to think about accounts of the mentioned monetary yr.
However, BGR mentioned the requirement to add the financials of the subsidiaries was missed out and the identical was uploaded belatedly.
Accordingly, it was established that BGR Energy Systems has violated disclosure rules, the regulator mentioned within the order.
The regulator famous that BGR didn’t disclose the submitting of purposes for initiation of CIRP by 31 candidates throughout the interval August 2021 to July 2023 inside 24 hours, when it comes to LODR guidelines.
BGR Energy Systems had borrowed unsecured loans to the extent of Rs 85.86 crore within the first quarter of FY 2022-23 and once more an quantity of Rs 45.65 crore in July and August 2022, which was a associated occasion transaction.
Therefore, the corporate was required to make sure compliance earlier than coming into into such a transaction when it comes to disclosure guidelines, which it didn’t do.
