Jindal Saw and others settle alleged violation case with Sebi

In a resolution with the Securities and Exchange Board of India (Sebi), five entities, including Jindal Saw and its promoter Prithavi Raj Jindal, settled a case related to alleged violations of regulatory norms on Friday.

The entities involved—Jindal Saw, Prithavi Raj Jindal, Hexa Tradex Ltd, JITF Infralogistics Ltd, and Sigmatech Inc—jointly paid a total of Rs 1.21 crore as part of the settlement charges.

The settlement order concluded after the applicants (Jindal Saw, Hexa Tradex Ltd, JITF Infralogistics, Sigmatech Inc, and Prithavi Raj Jindal) proposed to resolve the ongoing proceedings "without admitting or denying the findings of fact and conclusions of law."

Sebi's Adjudicating Officer Soma Majumder stated in the settlement order, "The instant adjudication proceedings initiated against applicants vide SCN dated February 01, 2022, are disposed of."

Sebi initiated the examination in response to concerns about Jindal Saw Ltd, Hexa Tradex Ltd, and JITF Infralogisitics Ltd's compliance with disclosure norms, SAST (Substantial Acquisition of Shares and Takeovers), and insider trading rules.

Sebi's observations indicated that Jindal Saw and JITF Infralogistics had provided incorrect shareholding patterns, potentially violating the SCRA, disclosure rules, and listing agreements.

Additionally, Hexa Tradex Ltd was found to have filed an inaccurate shareholding pattern by including Sigmatech Inc as a public shareholder, allegedly breaching norms.

Furthermore, Jindal Saw and Hexa Tradex failed to disclose SJindal Saw and others settle alleged violation case with Sebiigmatech Inc as part of the promoter group, potentially violating disclosure rules.

The settlement order noted that Sigmatech Inc delayed filing the report, allegedly infringing upon SAST regulations and insider trading norms by not making requisite disclosures.

Prithavi Raj Jindal, the promoter and Chairman of Jindal Saw, reportedly failed to fulfil responsibilities under disclosure rules.

In response to a show cause notice (SCN) issued by Sebi on February 01, 2022, for alleged norm violations, the applicants filed settlement applications, agreeing to settle the matter by paying Rs 1.21 crore.

Consequently, the entities made the payment, bringing closure to the case.

(With PTI inputs)