Norben Tea & Exports Limited, a listed entity on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), has been fined ₹5,900 each by the exchanges for a compliance lapse. The penalty, announced on December 13, 2024, relates to the late submission of disclosures concerning related party transactions, a violation under Regulation 23(9) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Nature of Non-Compliance

As per the SEBI LODR Regulations, listed entities are required to disclose details of related party transactions promptly to ensure transparency and protect investor interests. Norben Tea delayed this mandatory submission, leading to fines imposed by both exchanges. While the financial impact of the penalties is negligible, the incident highlights the importance of regulatory compliance for maintaining corporate governance standards.

Company’s Response

In its statement, Norben Tea clarified that the delay was unintentional and attributed the lapse to an inadvertent error in its compliance process. The management emphasized that they have always made efforts to adhere to the rules and regulations laid out by statutory authorities. They assured stakeholders that corrective measures, including stringent system and policy checks, are being implemented to prevent similar issues in the future.

SEBI Guidelines and Disclosures

The company, in its official filing, stated that it is committed to complying with SEBI’s updated circulars issued in 2023 and 2024. These include:

1. SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/2023/120 (July 11, 2023).
2. SEBI Circular SEBI/HO/CFD/CFDPoD1/P/CIR/2023/123 (July 13, 2023).
3. SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 (November 11, 2024).

As per SEBI norms, penalties for non-compliance act as a deterrent and underline the need for timely submissions to uphold market integrity and investor confidence.

Financial and Operational Impact

The fine, amounting to a total of ₹11,800 for both penalties, is unlikely to significantly impact the company’s financials or operations. However, the incident serves as a reminder of the importance of adhering to disclosure norms, especially when dealing with regulatory authorities like SEBI, BSE, and NSE.

Measures for Improved Compliance

Norben Tea has assured stakeholders of its commitment to optimum compliance with all applicable laws. The company is working to strengthen its internal processes and compliance mechanisms to ensure timely reporting and adherence to corporate governance standards.

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