Hikal Settles Disclosure Lapses Case with Sebi, Pays Rs 44 Lakh

New Delhi, Nov 29 (PTI) Pharmaceutical and biotech firm Hikal has settled with capital markets regulator Sebi a case of alleged violation of disclosure lapses by paying nearly Rs 44 lakh in settlement fee.

The settlement order came after the noticee (Hikal Ltd) proposed to settle the instant proceedings initiated against it, without "admitting or denying the findings of facts and conclusions of law".

The Securities and Exchange Board of India (Sebi) initiated adjudication proceedings against Hikal for the alleged violation of the provisions of LODR (Listing Obligations and Disclosure Requirements) regulations.

Thereafter, the regulator issued a show cause notice (SCN) to Hikal on August 22, 2023, for the alleged violations.

The SCN stated that Hikal failed to disclose information.

The show cause notice also alleged that Hikal failed to give adequate and timely disclosures and gave false and misleading disclosures to the stock exchanges with respect to seven events related to an incident which occurred due to the illegal discharge of a hazardous chemical, Sodium Hydrosulphide (NaHS), from a tanker.

"In view of the acceptance of the settlement terms and the receipt of settlement amount by Sebi, the instant adjudication proceedings initiated against the noticee vide SCN dated August 22, 2023, is disposed of the settlement regulations," Sebi's adjudicating officer Asha Shetty said in the order passed on Thursday.

Hikal Ltd applied to settle the proceedings that may be initiated against it for allegedly violating the disclosure regulations by filing a settlement application.

Pursuant to the receipt of the settlement application, the noticee proposed revised settlement terms, which were approved by Sebi's High Powered Advisory Committee (HPAC), which recommended the matter to be settled on payment of Rs 43.97 lakh towards settlement fee.

Further, the regulator advised Hikal to take appropriate action against the officer-in-default for the irregularities, under intimation to Sebi.

Accordingly, after remitting the settlement fee of Rs 43.97 lakh, Hikal settled the matter with the regulator.

The regulator reserves the right to take enforcement actions under the settlement rules if the applicant is found to have made false representations during the settlement process or breaches any conditions or undertakings given as part of the proceedings.