New Delhi, Sep 24 (PTI) Capital markets regulator Sebi on Tuesday imposed a penalty of Rs 9 lakh on BGR Energy Systems for disclosure lapses to the stock exchanges and flouting other market norms.
The order came after the Securities and Exchange Board of India (Sebi) conducted an examination in the matter of BGR Energy Systems Ltd (BGR) listed on the BSE and NSE.
The investigation was to ascertain whether there was any violation of the provisions of LODR (Listing Obligations And Disclosure Requirements) regulations by BGR Energy Systems.
During the examination, the regulator observed that BGR had allegedly failed to comply with the provisions of disclosure norms and various Sebi rules.
Thereafter, the market watchdog initiated adjudication proceedings against the noticee (BGR Energy Systems) and issued a show-cause notice to the company on August 2, 2024.
The regulator observed that BGR has admittedly uploaded the audited financial statements of its subsidiary companies viz, BGR Boilers Pvt Ltd and BGR Turbines Company Pvt Ltd for FY 2022-23 with delay.
The company was required to upload the financial statements at least 21 days prior to the date of the annual general meeting called to consider accounts of the said financial year.
However, BGR said the requirement to upload the financials of the subsidiaries was missed out and the same was uploaded belatedly.
Accordingly, it was established that BGR Energy Systems has violated disclosure regulations, the regulator said in the order.
The regulator noted that BGR failed to disclose the filing of applications for initiation of CIRP by 31 applicants during the period August 2021 to July 2023 within 24 hours, in terms of LODR rules.
BGR Energy Systems had borrowed unsecured loans to the extent of Rs 85.86 crore in the first quarter of FY 2022-23 and again an amount of Rs 45.65 crore in July and August 2022, which was a related party transaction.
Therefore, the company was required to ensure compliance before entering into such a transaction in terms of disclosure rules, which it failed to do. PTI HG HG BAL BAL
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