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19 Nov 2024
The Securities and Exchange Board of India (SEBI) imposed fines totaling Rs 35 lakh on Hexa Tradex Ltd, a company associated with the OP Jindal Group, along with its promoters and directors for breaching delisting regulations and other disclosure norms. The penalties, ranging from Rs 2 lakh to Rs 5 lakh, were levied on Hexa Tradex, its chairperson Raj Kamal Aggarwal, and directors Ravinder Nath Leekha, Vinita Jha, Girish Sharma, and Pravesh Srivastava collectively referred to as the "noticees."
Siddeshwari Tradex Pvt., Innox Global Multiventures, Opelina Sustainable Services, and JSL Ltd., which are promoter entities of Hexa Tradex Ltd, also faced fines from the market regulator.
Following a complaint received by SEBI in July 2022, an investigation was conducted regarding the delisting of Hexa Tradex Ltd, a company listed on BSE and NSE. Based on these complaints, SEBI initiated proceedings against the noticees to examine and adjudicate alleged violations of delisting rules and other regulatory provisions.
SEBI's adjudicating officer Santosh Kumar Sharma, in the order, highlighted that noticees 2-5 failed to exercise due care, diligence, or skill in their duties related to passing incorrect resolutions regarding compliance with securities laws by HTL and its acquirer entities, including Prithviraj Jindal and other promoter entities like Jindal Saw Ltd, JITF Infra logistics, and Sigmatech Inc.
Furthermore, SEBI noted that HTL and its promoter entities were aware of the proceedings initiated against them but misrepresented compliance with rules to the stock exchanges. The regulator emphasized that acquirers could not avoid responsibility for disclosing material information in the Detailed Public Announcement (DPA) despite certifications by Dwivedi & Associates and board meetings.
SEBI also found that noticees 9-12 (Siddeshwari Tradex, Innox Global Multiventures, Opelina Sustainable Services, and JSL Ltd.) failed to comply with securities laws regarding their disclosures in the DPA.
Additionally, SEBI observed that Pravesh Srivastava, who served as the compliance officer and company secretary, failed to ensure conformity with compliance requirements, thereby violating Listing Obligations and Disclosure Requirements (LODR) rules.
In conclusion, SEBI's action underscores lapses in adherence to regulatory norms by Hexa Tradex Ltd and its associated entities, prompting penalties for violations related to delisting and disclosure obligations.
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