Highlights
- Coffee Day Enterprises Limited has settled a regulatory case with the Securities and Exchange Board of India by paying a settlement amount of ₹7,52,400 for alleged violations of listing obligations and disclosure requirements.
- The settlement process was initiated following a show cause notice issued on October 16, 2023, and concluded with the approval of settlement terms by the Panel of Whole Time Members of the Securities and Exchange Board of India on July 25, 2024.
- The settlement order, which comes into immediate effect, allows the Securities and Exchange Board of India to initiate further proceedings if Coffee Day Enterprises Limited fails to comply with full and true disclosure regulations.
As per a settlement order by the Securities and Exchange Board of India (SEBI), dated August 13, 2024, it has settled a regulatory case by paying a settlement of ₹7,52,400 in an alleged violation of listing obligations and disclosure requirements.
SEBI initiated adjudication proceedings against the company under Section 23A(a) of the Securities Contracts (Regulation) Act, alleging potential violations of disclosure regulations.
The hearings started with a show cause notice dated October 16, 2023, that made the company look at a settlement option without admitting or denying the specific findings thereof. Such an approach is allowed under SEBI’s Settlement Proceedings Regulations, 2018.
On June 14, 2024, following internal committee meetings and review by HPAC, the settlement terms were recommended; the Panel of Whole Time Members of SEBI approved those terms on July 25, 2024.
The amount of settlement was promptly remitted by the company on August 1, 2024, which was acknowledged by the concerned department of SEBI.
The adjudication proceedings were disposed of under Section 15JB of the SEBI Act.
SEBI still reserves its discretion to restore or initiate further proceedings if it finds that Coffee Day Enterprises Limited on the grounds of not making full and true disclosure; or contravening any undertakings or waivers
The settlement order, passed by Adjudicating Officer Asha Shetty in Mumbai, comes into immediate effect.
Coffee Day Enterprises Limited, one of the major players in the Indian corporate landscape, has thus brought a swift conclusion to this regulatory matter, demonstrating a cooperative approach to resolving potential compliance issues.
