Sebi passes consent order in the matter of Nova Petrochemicals

12-Apr-13

Capital market watchdog Sebi (Securities and Exchange Board of India) settled charges of non-compliance of disclosure norms against CIL Nova Petrochemicals and GSL Nova Petrochemicals after the companies paid a total of Rs 10 lakh in settlement charges, as per Economic Times. While passing the consent order, Sebi said the order will come into force immediately and it has disposed of adjudication proceedings against the companies. A consent order is an order settling administrative or civil proceedings between the regulator and a party. CIL Nova Petrochemicals and GSL Nova Petrochemicals (erstwhile Nova Petrochemicals) had allegedly failed to make necessary disclosure under the Sebi's Substantial Acquisition of Shares and Takeovers (SAST) Regulations in the matter of Nova Petrochemicals. Consequently, Sebi initiated an adjudicating proceeding to inquire into the alleged violations. The regulator issued a show cause notice to the companies in September 2009. While the adjudicating proceedings were in progress, the companies submitted a consent order application to Sebi in April 2010. The companies proposed consent terms of Rs 10 lakh towards settlement charges. Pursuant to the application, the consent terms were placed before the High Powered Advisory Committee of Sebi. The committee recommended that the case may be settled on the consent terms proposed by the companies. Accordingly, without admitting or denying the guilt, the applicants have remitted a sum of Rs 5 lakh each towards the settlement charges.