Tata Technologies Resolves SEBI Dispute Over The Issuing Of Shares

Tata Technologies Resolves SEBI Dispute Over The Issuing Of Shares

Tata Technologies Resolves SEBI Dispute Over The Issuing Of Shares: On November 11, 2022, Tata Motors, the company that founded Tata Technologies, was mandated to issue a tender offer to all current qualifying equity shareholders of Tata Technology in exchange for a refund.

Tata Technologies has paid a settlement sum of Rs 25 lakh to capital markets regulator Sebi in connection with an alleged infringement of the guidelines on disclosure and investor protection. After Tata Technologies submitted a suomotu settlement application to Sebi, proposing to resolve the enforcement proceedings that may be brought against it for the purported infraction of DIP (Disclosure and Investor Protection) guidelines, the order was issued.

Tata Technologies Resolves SEBI Dispute Over The Issuing Of Shares

In its settlement order, the Securities and Exchange Board of India (Sebi) stated that “it is hereby ordered may any lawsuits that may be initiated for the violations… are settled in respect of the applicant (Tata Technologies)”. Multiple preferential allotments were made by the corporation between December 27, 2000 and March 13, 2008.

In breach of the Sebi’s DIP criteria, these allocations led to the issuance of shares to additional than 49 shareholders in a single fiscal year.

On November 11, 2022, Tata Motors, the company that founded Tata Technologies, was mandated to issue a tender offer to all current qualifying equity shareholders of Tata Technologies in exchange for a refund. However, none of the stockholders who were entitled to do so tendered any shares to the promoter.

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The order said that a peer-reviewed independent Chartered Accountant had validated this. Both the BSE and the NSE list Tata Motors. Compounding was permitted subject to the petitioner paying compounding fees of Rs 3.42 crore under an order that NCLT issued in May to resolve the compounding petition.

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