Sebi on May 17, 2024, issued a show cause notice (SCN) to Khera, Lilani, Arora, Ravi Chandra Adusumalli, Mark Schwartz, Pallavi Shardul Shroff and Douglas Feagin seeking their response as to why an inquiry should not be held and penalty not be imposed against them.
A six-page order issued by the regulator said Khera failed to ensure conformity with the regulatory provisions applicable to the listed entity in letter and spirit, in violation of LODR Regulations, 2015.
Meanwhile, independent directors Lilani and Arora, being part of NRC, failed to discharge duties with an unbiased and independent approach while making decisions with respect to matters involving benefits to the company’s MD & CEO Vijay Shekhar Sharma and his relatives, read the order.
The directors approved and signed offer documents containing incorrect statements and incomplete disclosures, it noted.
Their applications were placed before the Internal Committee of Sebi in its meeting held on August 27, 2024.The Internal Committee then recommended the matter for settlement upon payment of Rs 53.62 lakh by Lilani and Arora. It also recommended an amount of Rs 11.05 lakh crore to be paid by Khera. As for the rest, an amount of Rs 42.90 lakh was recommended.The case was later placed before the High Powered Advisory Committee (HPAC) for settlement, to which the HPAC agreed.
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