National Peroxide Pays Rs9.42 Lakh To Settle Disclosure Lapses Case with SEBI
Moneylife Digital Team 12 February 2025
Wadia group company National Peroxide Ltd paid Rs9.42 lakh to settle a case with the Securities and Exchange Board of India (SEBI) over alleged disclosure lapses.  
 
SEBI had initiated an investigation into the company for violating Clause 5 of Para A of Part II of the master circular on scheme of arrangement in August 2024. According to these regulations, listed companies must ensure that specified securities are listed and commence trading within 60 days of receiving approval from the high court or national company law tribunal (NCLT) across all stock exchanges where the company's shares were or are listed.  
 
However, National Peroxide failed to comply with this requirement. Despite receiving the NCLT order on 25 May 2023, the company shares were listed and began trading only on 4 July 2024, a delay of 406 days, far exceeding the prescribed 60-day timeframe.  
 
As a result, SEBI issued a show-cause notice (SCN) to National Peroxide in September 2024, seeking an explanation as to why enforcement action should not be taken against the company for non-compliance.  
 
National Peroxide filed a settlement application in November 2024 during the adjudication process. Following a review of the company's submissions, SEBI’s high-powered advisory committee (HPAC) meeting in December 2024 recommended a settlement amount of Rs9.42 lakh.  
 
On 5 February 2025, SEBI's panel of whole-time members (WTMs) approved the HPAC's recommendation. Subsequently, National Peroxide completed the payment and formally settled the matter with the regulator.
Comments
david.rasquinha
2 months ago
An absurd SEBI ruling. In the first place, the persons adversely affected by the delay would be the company shareholders, so penalising the company (even a laughable amount) amounts to penalising the affected persons! The penalty should have been on the promoters and management, and should have been a salutary amount to have any impact. Like many of SEBI's actions, an inexplicable and illogical ruling.
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