Jumbo Finance Ltd on Wednesday settled with SEBI a case on violation of regulatory norms in respect of equity shares issued by the company on a preferential basis after paying Rs 44.2 lakh towards the settlement fee.
This came after the company proposed to settle the proceedings initiated against it, "without admitting or denying the findings" through a settlement order.
"The instant adjudication proceedings initiated against the applicant by way of issuance of SCN (show cause notice) ... in respect of Jumbo Finance Ltd dated April 13, 2022, are disposed of," the Securities and Exchange Board of India (SEBI) said.
In the show cause notice issued, it was alleged that the listing application was not filed by Jumbo Finance within 20 days of the allotment of shares. Also, the allotment of shares was not made within 15 days of shareholders’ approval.
In addition, it was alleged that out of 45 lakh equity shares allotted, 5.03 lakh equity shares were given to those allottees in excess of the approval granted by the shareholders through special resolution and prior approval given by the bourse exchange and 36.35 lakh equity shares were allotted to those allottees for which the company had not taken shareholders' nod as well as exchange’s in-principle approval.
Through these acts, the company allegedly violated ICDR (Issue of Capital and Disclosure Requirements) Regulations and LODR (Listing Obligations and Disclosure Requirements) norms.
Pending adjudication proceedings, the company settled the case after paying Rs 44.2 lakh, the order mentioned.