Company and Top Executives Penalized ₹90 Lakh for Compliance Lapses
Urja Global Faces SEBI’s Wrath Over False Announcements
Unmesh Gujarathi
Sprouts News Exclusive
In a significant regulatory action, the Securities and Exchange Board of India (SEBI) has imposed a cumulative penalty of ₹90 lakh on Urja Global Limited and its top executives for misleading disclosures and multiple compliance lapses. This move underscores SEBI’s commitment to maintaining transparency and integrity in the securities market.
Background
SEBI’s investigation, covering the period from April 2018 to August 2019, revealed that Urja Global made false and misleading corporate announcements, particularly concerning a purported agreement with Japan’s Nippon Shinyaku Co. Ltd. The company claimed to have entered into a deal to supply a product named Zacobite. However, Nippon Shinyaku, in an email dated September 5, 2019, explicitly denied any such dealings, stating that neither the company nor any of its directors, including Prof. Yukio Sugiura, had undertaken any agreements with Urja Global.
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Penalties Imposed
For these violations, SEBI has barred Urja Global and four individuals- Yogesh Kumar Goyal, Sunil Kumar Mittal, Priya Bhalla, and Avinash Kumar Agarwal- from accessing the securities market for two years. Additionally, the company is mandated to obtain a certificate of authenticity for corporate announcements from a practicing company secretary for the next three years. This measure aims to ensure that all future disclosures comply with the Listing Obligations and Disclosure Requirements (LODR) regulations.
Analysis
The Special Investigation Team at Sprouts Newspaper delved deeper into the implications of SEBI’s order. The stringent penalties highlight SEBI’s zero-tolerance approach towards entities that attempt to mislead investors through false disclosures. By enforcing such measures, SEBI aims to uphold market integrity and protect investor interests.
Furthermore, the requirement for Urja Global to obtain a certificate of authenticity for its corporate announcements sets a precedent for other companies, emphasizing the importance of due diligence and accuracy in public disclosures. This move is expected to enhance transparency and restore investor confidence in the market.
The Sprouts Newspaper’s Special Investigation Team will continue to monitor developments in this case and provide updates on SEBI’s enforcement actions to ensure that market participants adhere to the highest standards of corporate governance.
Unmesh Gujarathi
Editor in Chief
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