Tata Motors Finance Settles SEBI Case Over NCD Issuance

Tata Motors Finance Ltd settled a case with SEBI regarding alleged violations in the issuance of non-convertible debentures by paying Rs 32 lakh. The case involved unlisted NCDs issued to over 200 investors, which violated the Companies Act. Revised settlement terms were approved, ending further legal proceedings.

In a significant development, Tata Motors Finance Ltd has settled its case with the Securities and Exchange Board of India (SEBI) over alleged violations in the issuance of non-convertible debentures (NCDs). The resolution involved a payment of Rs 32 lakh.

The controversy centered on five issuances of Tier II perpetual NCDs made between November 2019 and July 2022, which were deemed public issues due to sales to more than 200 investors within six months, contravening the Companies Act, 2013, as well as SEBI's regulations on non-convertible securities.

SEBI agreed to the revised settlement terms proposed by TMFL, thus avoiding further proceedings. However, SEBI retains the right to take future action if the settlement terms are not adhered to or if any misrepresentation is discovered.

(With inputs from agencies.)