Market regulator Sebi on Wednesday imposed a $ 5.25 fine in Cairn India by making a misleading announcement about a 2014 stock exchange. In addition, the regulator imposed a fine of Rs 15 lakh each on P Elango, former Cairn CEO, Aman Mehta, former director of the company’s board, and Neerja Sharma, former director (risk assurance) and company secretary. , said Sebi about the order.
The three executives had signed a public advertisement about the repurchase in January 2014 and assisted the company in making a misleading announcement. After a thorough investigation, Sebi found that Cairn did not place enough purchase orders despite the fact that there were enough sales orders on the NSE.
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It also noted that Cairn was unable to meet at least 50 percent of the refunds, even though conditions were favorable for the company. “… Cairn by not placing enough buy orders in spite of having enough sales orders on the NSE has been misleading by making a misleading announcement about the return of shares intended to influence investors’ decision and to facilitate the sale or purchase of securities,” said Sebi. in its 41-page sequence. “
By making a public declaration of a refund without the intention of achieving it, these businesses have fraudulently violated the terms of the PUTUTP (Prohibition of Fraudulent and Unfair Trade Practices) procedures and refund procedures. Cairn made a public announcement on January 14, 2014, of the purchase of 17,08,95,522 equity shares of Rs 10 each at a high price of Rs 335 each for R5,725 in the open market.
The repatriation grant was scheduled to open on January 23, 2014, and close on July 22, 2014. Cairn announced that as of June 27, 2014, she had been able to recoup 3,67,03,839 shares, representing 21.48 cents of top-selling stocks. they use a total amount of Rs 1,225.45 crore or 28.59 percent of the maximum return size.
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It was noted that Cairn was not able to use the minimum 50 percent refund size as required under the Buy Buy Regulations. Therefore, it sought an extension of the return period, which was not approved by Sebi. Thereafter, in July 2014, Cairn had submitted that it would not be able to obtain a minimum of 50 percent of the purchase size as required under the rules.
In addition, the company has applied to the Department to issue a cash cash (Rs 143.125 crore), which contains 2.5 percent of the refund size. Following this, the director had investigated the matter. Following this, the director had investigated the matter. Cairn India merged with Vedanta Ltd in 2018.
