Latest News

SEBI imposes Penalty on Reliance Home Finance


➡️ Click here to join our Whatsapp Group

The Securities and Exchange Board of India (SEBI), the capital markets regulator, has imposed a penalty of Rs 8 lakh on Reliance Home Finance. The penalty was issued due to the company’s failure to make necessary disclosures to the stock exchanges regarding an order issued by the National Company Law Tribunal (NCLT) in June 2021. SEBI has instructed Reliance Home Finance to pay the fine within 45 days.

SEBI’s order highlights that the company did not make disclosures related to the NCLT order issued on June 21, 2021. Additionally, Reliance Home Finance failed to disclose information about appeals filed by the company and Bank of Baroda against the NCLT’s order.

According to the NCLT order, Reliance Home Finance was directed to pay interest on the debentures at the contractual rate within two months, and to redeem the debentures by paying the principal within three months thereafter. The outstanding amount due and payable in relation to the secured non-convertible debentures exceeded Rs 2,850 crore.

Under SEBI’s Listing Obligations and Disclosure Requirements (LODR) rule, the company was required to make the necessary disclosures within 24 hours of the order being passed. However, Reliance Home Finance claimed that the information had already been disclosed in their annual report and through media coverage and various websites. SEBI, however, stated that such disclosures were not considered compliant with the provisions of the LODR Regulations.

In addition to the NCLT order, Reliance Home Finance also made delayed disclosures regarding its debt resolution plan. The company disclosed the invitation of Expression of Interest bid on July 31, 2020, and the approval of the resolution plan on June 21, 2021, with delays of one day for each event. The required disclosures for these events were supposed to be made by July 30, 2020, and June 20, 2021, respectively.

SEBI has imposed the penalty on Reliance Home Finance for the violation of provisions of the LODR Regulations, 2015, read with clause 2 of the Listing Agreement.

Leave a Reply

Your email address will not be published. Required fields are marked *