The watchdog had conducted a probe to ascertain whether then Deccan Chronicle Holdings’ promoters had made any fraudulent pledging of shares and whether adequate disclosures had been made during the October 2011 to December 2012 period.
It was found that the then promoters of the company had pledged 3 crore shares constituting 14.37 per cent stake with Religare Finvest in July 2012, according to an order issued on Friday.
As per the irrevocable power of attorney dated June 1, 2012, the shares were deposited with Religare Finvest acting as the depository participant on June 2, 2012. These shares were encumbered at the time of entering into the agreement on June 1.
Later, Religare Finvest had invoked the pledged 3 crore shares on August 2, 2012. On both occasions, requisite disclosures were not made, as per the regulator.
The settlement order comes after Religare Finvest Ltd filed an application with the regulator proposing to settle the matter neither admitting nor denying the findings of fact of the case.
The High Powered Advisory Committee (HPAC) recommended that the case may be settled on payment of Rs 13,80,591 towards settlement terms as proposed by Religare Finvest. The recommendation was approved by a panel of Whole Time Members of Sebi on September 28, 2020.
Subsequently, Religare Finvest paid the money and settled the case.