Coffee Day Enterprises has settled a case pertaining to alleged disclosure norm violations with the Securities and Exchange Board of India (SEBI) for Rs 69 lakh.
On February 18, this year, the company filed an application for settlement under the SEBI (Settlement Proceedings) Regulations, 2018 after issuance of notice of show cause.
Among the allegations against the company was that no limited review report was presented to the board of directors during meetings on November 13, 2019 and January 29, 2020 at which the quarters ending June 30, 2019 and September 30, 2019 financial results were approved. In addition, the company submitted unaudited financial results for the quarters ended June 30, 2019 and September 30, 2019, but the same were not limited reviewed by the company’s statutory auditors. ‘Noticee was, therefore, alleged to be in violation of Regulations 33(3)(c)(i) and 33(3)(h) of LODR Regulations,’ it said.
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A second allegation was that the company disclosed to the stock exchanges on January 23, 2020 that it had entered into the Definitive Agreement to sell Way2Wealth Securities Private Ltd, including its certain subsidiaries, to Shriram Ownership Trust, subject to the closing conditions. ‘However, the details of sale of Way2Wealth as stipulated in the SEBI circular No CIR/CFD/CMD/4/2015 dated September 9, 2015 were not disclosed by the company,’ the settlement order said.
In response to a query, the company that operates the Café Coffee Day chain said that the details of the sale of Way2Wealth had been emailed to stock exchanges on January 31, 2020. The NSE clarified, however, that the company did not submit the details on the dedicated NEAPS portal for dissemination. Afterwards, the company informed that it uploaded the details of the sale of Way2Wealth to the stock exchanges on August 31, 2020 and the same was not uploaded earlier since the company was about to inform once it had final approvals from the statutory regulators and completed the sale process. ‘Coffee Day Enterprises Ltd made a payment of Rs 69,06,250 towards settlement amount by way RTGS Fund transfer on August 27, 2021 as per the settlement terms approved by the Panel of Whole Time Members,’ it said.
According to the SEBI order, the pending adjudication proceedings initiated against Coffee Day Enterprises Ltd have been concluded following the settlement.
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