RM Drip Promoter Settles Disclosure Lapse Case with SEBI

New Delhi, Nov 6 (PTI) Nivrutti Pandurang Kedar, one of the promoters of RM Drip and Sprinklers Systems, has settled with Sebi a case related to an alleged violation of disclosure norms after paying Rs 22.16 lakh towards settlement charges.

RM Drip and Sprinklers Systems Ltd is a listed entity on the Emerge platform of the National Securities Exchange (NSE).

The settlement order came after Nivrutti Pandurang Kedar (applicant) filed a suo motu settlement application to Sebi, proposing to settle by neither "admitting nor denying the findings of fact and conclusions of law".

The enforcement proceedings may be initiated against him (Kedar) for the violation of Sebi's Substantial Acquisition of Shares and Takeovers (SAST) norms.

"In exercise of the powers and terms of the settlement regulations, it is hereby ordered that any proceedings that may be initiated for the violations are settled in respect of the applicant (Nivrutti Pandurang Kedar)," Sebi's whole time members Amarjeet Singh and Kamlesh C Varshney said in the order on Tuesday.

In its order, the Securities and Exchange Board of India (Sebi) noted that Kedar has been one of the promoters of RM Drip and Sprinklers Systems Ltd since 2014.

As of November 2022, the applicant individually owned an 8.18 per cent stake in the company and along with Persons Acting in Concert (PACs) held 20.35 per cent of the total share capital of the company.

Pursuant to the transfer of shares among the promoters, Kedar acquired an additional stake in RM Drip and Sprinklers Systems, which resulted in his individual holding increasing to 40.52 per cent and with PACs to 51.83 per cent.

After the acquisitions in January and February 2023, the applicant acquired more than 25 per cent holding in the firm.

Even though the acquisitions were exempted under SAST rules, Nivrutti Pandurang Kedar was required to disclose them, as market norms. However, the requisite disclosures were made with delay.

Nivrutti Kedar applied to settle the proceedings that may be initiated against him for allegedly violating the delayed disclosures.

Pursuant to the receipt of the settlement application, Kedar filed revised settlement terms, wherein he proposed to pay Rs 22.16 lakh being the settlement amount.

The revised terms proposed by the applicant were approved by the Sebi's High Powered Advisory Committee (HPAC), which recommended the matter be settled.

After remitting the settlement fee of Rs 22.16 lakh, Nivrutti Pandurang Kedar settled the case with Sebi.