Hubtown Ltd settles case with Sebi

There was also a letter from the finance ministry requesting the regulator to examine the dubious transaction conducted by the noticee.In September 2018, the noticee had acquired 51 per cent stake in E-commerce and subsequently sold the stake in the same month.

Hubtown Ltd has settled with markets regulator Sebi a case related to alleged violation of disclosure norms after paying Rs 16.91 lakh as settlement charges.

Sebi disposed of the adjudication proceedings initiated against the entity. It had issued a show cause notice in August 2021.

The regulator in an order on Wednesday said that Hubtown Limited (noticee) had filed the settlement application to settle the proceedings without admitting or denying the findings of fact and conclusions of law.

Sebi began looking into the matter after it received certain references containing news articles with respect to Hubtown (noticee). There was also a letter from the finance ministry requesting the regulator to examine the dubious transaction conducted by the noticee.

In September 2018, the noticee had acquired 51 per cent stake in E-commerce and subsequently sold the stake in the same month. However, there was a delay in making the requisite disclosures, according to the settlement order.

As per the order, there was also non-disclosure with respect to the price condition for the acquisition of the stake.

On these grounds, it was alleged that the entity had violated Listing Obligations and Disclosures Requirements (LODR) Regulations.

Pending adjudication proceedings, the noticee proposed to settle the instant proceedings without admitting or denying the findings of fact and conclusions of law, through a settlement order and filed the settlement application.

After the entity paid Rs 16.91 lakh towards settlement charges, Sebi settled the case.