“The proceedings that may have been initiated for the alleged defaults … are settled qua the applicant (Capital Small Finance Bank),” Sebi said in a settlement order passed on Friday, adding that it will not initiate enforcement action against the applicant for the default.
Capital Small Finance Bank had made allotment of its equity shares to 402 persons on 14 occasions in tranches from May 2004 to March 2005. The allotment was allegedly in violation of the Companies Act, and Sebi’s DIP (Disclosure and Investor Protection) Guidelines, the order mentioned.
Also, the applicant had filed a compounding application for violation of the Companies Act with National Companies Law Tribunal (NCLT), which had imposed a penalty in November 2021 and the application was accordingly disposed of, it added.
Pursuant to receipt of the application, Sebi’s committee recommended the case for settlement upon payment of Rs 5.8 lakh, which was remitted by Capital Small Finance Bank and accordingly settled the matter with the regulator. PTI SP SP ABM ABM
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