Jindal Saw, 4 Others Settle Sebi Case: Rs 1.21 Crore Paid

New Delhi, Dec 1 (PTI) Five entities, including Jindal Saw and its promoter Prithavi Raj Jindal, on Friday settled with markets regulator Sebi a case pertaining to alleged violation of regulatory norms.

The entities -- Jindal Saw, Prithavi Raj Jindal, Hexa Tradex Ltd, JITF Infralogistics Ltd and Sigmatech Inc -- paid a total of Rs 1.21 crore towards the settlement charges.

The settlement order came after the applicants (Jindal Saw, Hexa Tradex Ltd, JITF Infralogistics, Sigmatech Inc and Prithavi Raj Jindal) proposed to settle the instant proceedings initiated against them "without admitting or denying the findings of fact and conclusions of law".

"The instant adjudication proceedings initiated against applicants vide SCN dated February 01, 2022, is disposed of," Sebi's Adjudicating Officer Soma Majumder said in the settlement order.

The order came after Sebi conducted the examination in the matter of Jindal Saw Ltd, Hexa Tradex Ltd and JITF Infralogisitics Ltd to determine if there was any non-compliance with disclosure norms, SAST(Substantial Acquisition of Shares and Takeovers) and insider trading rules.

After the examination, Sebi observed that Jindal Saw and JITF Infralogistics had filled incorrect shareholding patterns and thereby, allegedly violated the SCRA, disclosure rules and listing agreement.

It was also observed that Hexa Tradex Ltd has filed a wrong shareholding pattern by including Sigmatech Inc as a public shareholder and allegedly flouted norms.

Further, Jindal Saw and Hexa Tradex have not disclosed Sigmatech Inc as part of the promoter group, thereby allegedly violating disclosure rules.

In its settlement order, Sigmatech Inc has delayed the filing of the report, and by failing to make requisite disclosures, it has allegedly flouted SAST (Substantial Acquisition of Shares and Takeovers) regulations and insider trading norms.

In addition, Jindal Saw's promoter and Chairman Prithavi Raj Jindal failed to fulfil the responsibilities under the disclosure rules.

Following this, a show cause notice (SCN) was issued by the markets watchdog to the applicants on February 01, 2022, for the alleged violation of norms, the regulator said.

Subsequent to the issuance of SCN, the applicants filed the settlement applications with Sebi, which recommended settling the matter on payment of Rs 1.21 crore.

Consequently, the applicants paid the amount and settled the case.