SpiceJet's chief Ajay Singh pays over Rs 2 lakh to Sebi to settle non-disclosure of transaction case
Homegrown low-cost carrier SpiceJet's chief Ajay Singh on Monday paid Rs 2,02,500 to capital markets regulator Sebi in relation to alleged disclosure lapse in share purchase, PTI reported.
"Ajay Singh... filed an application in terms of the Sebi (Settlement of Administrative and Civil Proceedings) Regulations, 2014 (‘Settlement Regulations’) proposing to settle, without admitting or denying the findings of fact and conclusions of law, through a settlement order, the proposed adjudication proceedings intimated vide Notice of Approved Enforcement Action dated June 21, 2016 for his failure to make disclosure under regulation 10(6) of the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (‘SAST Regulations’) for the transaction dated February 23, 2015," Sebi said in its order on Monday.
On January 15, 2015, SpiceJet had surged on $240 million rescue plan by its daily limit in Mumbai trading after billionaire Kalanithi Maran agreed to give up control to a group of investors led by Singh to keep the cash-strapped carrier flying, according to Bloomberg report.
"The applicant (Ajay Singh) vide Demand Draft no. 027615 dated March 22, 2017, drawn on HDFC Bank, payable at Mumbai has remitted a sum of Rs 2,02,500/-towards the settlement charges," Sebi said in a statement.
"The adjudication proceedings proposed to be initiated against the applicant for the alleged violation as discussed..., are settled qua the applicant as per the above terms, by way of this order and Sebi shall not initiate any enforcement action against the applicant for the said defaults," it further added.
On Monday, the stock of SpiceJet closed up 4.64% or Rs 4.30 a Rs 97.00 on the BSE.
See LIVE stock updates of SpiceJet here-