Sebi slaps Rs 8 lakh fine on ABG Shipyard's officials
New Delhi: Markets regulator Sebi on Friday imposed a penalty of Rs 8 lakh on three non-independent directors of ABG Shipyard for misleading the company's stakeholders by approving false and mis-stated financial results.
The markets watchdog has levied a fine of Rs 3 lakh each on Arun Pathak and Syed Abdi and Rs 2 lakh on Dhananjay Datar.
However, the regulator has disposed of case against ABG on the ground that leave of NCLT has not been obtained for commencing the adjudication proceedings against the company, which is under liquidation.
Sebi found that ABG failed to disclose a tax-related settlement order passed in April 2016 by the income tax department to the stock exchanges. Further, the firm was responsible for publishing incorrect and mis-stated financial results over the years that lead to violation of equity listing agreements (ELA).
Pathak and Abidi were the signatory to the certification on compliance with code of conduct of ELA during 2012-13 and 2013-14, respectively and they had given a false declaration regarding the compliance of code of conduct by all board members and senior management personnel of the company as required under the equity listing agreements.
Besides, they were the members of the audit committee of the company who had failed to diligently perform the role entrusted upon them with regard to mis-stated financial results during the 2008-14.