The Securities Appellate Tribunal (SAT) has set aside a SEBI order that imposed a Rs 5 lakh fine on CG Power and Industrial Solutions for flouting disclosure norms and listing agreements. "The impugned order dated December 23, 2022, SEBI's adjudicating officer has imposed a penalty of Rs 5 lakhs upon the appellant-company for violation of the listing agreement under section 23E of the Securities Contracts (Regulation) Act (SCRA), cannot be sustained and is quashed," SAT said in the order passed on Thursday.
CG Power and Industrial Solutions had filed an appeal against the SEBI order. Last year in December, SEBI in its order found that the company failed to make timely disclosures about the loan defaults to the exchanges in January 2020. The disclosures were made to the stock exchange on June 27, 2020, after a delay of 178 days.
Also, it failed to make the disclosure required on default of loans to exchanges on quarterly basis in the prescribed format. It made a delay of 81 days in making the disclosure for the quarter ended March 2020, thereby violating LODR rules and SCRA norms.
