PC Jeweller pays Sebi Rs 7.23 cr to settle disclosure lapse case

PC Jeweller Ltd on Friday settled a case related to alleged non-disclosure of information about loan default with markets regulator Sebi with a payment of Rs 7.23 crore. This came after the jewellery retailer proposed to settle the instant proceedings initiated against it, "without admitting or denying the findings of facts and conclusions of law", through a settlement order.

The Securities and Exchange Board of India (Sebi) initiated adjudication proceedings against PC Jeweller for the alleged violation of various provisions of LODR (Listing Obligations and Disclosure Requirements) Regulations and issued a show cause notice on February 29, 2024.

The show cause notice was issued to PC Jeweller due to allegations of failing to disclose or delaying the disclosure of important information about loan defaults, according to the settlement order.

This includes not sharing quarterly reports, classifying loans as non-performing assets (NPAs), submitting a Resolution Plan to lenders, and the failure of the plan. It also covers the rejection of the plan, an improved plan that also failed, a writ petition filed in the Delhi High Court regarding the plan rejection, petitions from SBI in DRT and DRAT, loan recall notices from banks, an application for Corporate Insolvency Resolution Process (CIRP), seizure of guarantor properties, and providing misleading information to investors and stock exchanges.

Pending adjudication proceedings, the jewellery retailer remitted Rs 7.23 crore and settled the case with Sebi. "In view of the acceptance of the settlement terms and the receipt of settlement amount ...by Sebi, the instant adjudication proceedings initiated against the noticee vide SCN ...dated February 29, 2024 is disposed of," Sebi said