SEBI settles Welspun Fintrade case

NEW DELHI: Sebi today settled the adjudication proceedings against Welspun Fintrade with regard to violation of takeover norms on payment of Rs 2 lakh settlement charges.

Sebi found that Welspun Fintrade, earlier known as Welspun Trading, failed to comply with takeover regulations with respect to transactions in the shares of Welspun India during 2006 and 2010.

Non-compliance on the part of Welspun Trading came to the notice of Sebi from the letter of offer made by one Krishiraj Trading Ltd to buy upto 26 per cent stake in Welspun India. The public announcement was made in May 2012.

Welspun Trading is a promoter entity of Welspun India.

As Sebi's adjudication proceedings were going on, Welspun Trading, in April this year, proposed to pay Rs 2 lakh to settle the matter through consent mechanism.

"The High Powered Advisory Committee considered the settlement terms proposed by Welspun Fintrade Pvt Ltd and recommended for settlement of the aforesaid adjudication proceedings upon payment of Rs 2,00,000 towards settlement charges," Sebi said.

Under the consent mechanism, entities can seek to settle cases with the regulator after payment of certain charges and and other expenses without admission of guilt.