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SEBI Imposes Penalties on Jaiprakash Power Ventures for Financial Misrepresentation
Team Finance Saathi
28/Dec/2024
What's covered under the Article:
- SEBI imposes penalties on Jaiprakash Power Ventures and officials for misrepresentation.
- Total fines amount to Rs. 38 lakh, with detailed breakdown per individual.
- Company plans to evaluate impact and seek legal advice on future actions.
On December 28, 2024, Jaiprakash Power Ventures Limited (JPVL) (Scrip Code: 532627) announced a disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 following an Adjudication Order from the Securities and Exchange Board of India (SEBI). The order, issued on December 27, 2024, pertains to financial penalties imposed on the company and its officials, including an Ex-Whole-time Director. This decision follows alleged violations of the Securities and Exchange Board of India Act (SEBI Act), 1992, and the Securities Contract (Regulation) Act (SCRA), 1956.
Details of the Violations:
According to the SEBI order, Jaiprakash Power Ventures and its executives have been found guilty of misrepresenting the company’s financial statements, leading to penalties for violating the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations under Section 15HA of the SEBI Act. Additionally, violations of the Listing Obligations and Disclosure Requirements (LODR) regulations and SEBI Circulars have been cited, as well as breaches of the Listing Agreement under Section 23H of the SCRA.
Penalties Imposed:
SEBI has levied the following penalties for each party involved:
-
Jaiprakash Power Ventures Ltd.:
- Rs. 10,00,000 under Section 15HA of SEBI Act (PFUTP violations)
- Rs. 2,00,000 under Section 15HB of SEBI Act (LODR violations)
- Rs. 2,00,000 under Section 23H of SCRA (Listing Agreement violation)
- Total Penalty: Rs. 14,00,000
-
Mr. Suren Jain, Managing Director & CEO:
- Rs. 5,00,000 under Section 15HA of SEBI Act
- Rs. 1,00,000 under Section 15HB of SEBI Act
- Rs. 1,00,000 under Section 23H of SCRA
- Total Penalty: Rs. 7,00,000
-
Mr. Sunil Kumar Sharma, Vice Chairman:
- Rs. 5,00,000 under Section 15HA of SEBI Act
- Rs. 1,00,000 under Section 15HB of SEBI Act
- Rs. 1,00,000 under Section 23H of SCRA
- Total Penalty: Rs. 7,00,000
-
Mr. Manoj Gaur, Chairman:
- Rs. 5,00,000 under Section 15HA of SEBI Act
- Rs. 1,00,000 under Section 15HB of SEBI Act
- Rs. 1,00,000 under Section 23H of SCRA
- Total Penalty: Rs. 7,00,000
-
Mr. Praveen Kumar Singh, Whole-time Director:
- Rs. 5,00,000 under Section 15HA of SEBI Act
- Rs. 1,00,000 under Section 15HB of SEBI Act
- Rs. 1,00,000 under Section 23H of SCRA
- Total Penalty: Rs. 7,00,000
-
Mr. M.K.V. Rama Rao, Ex-Whole-time Director:
- Rs. 5,00,000 under Section 15HA of SEBI Act
- Rs. 1,00,000 under Section 15HB of SEBI Act
- Total Penalty: Rs. 6,00,000
-
Mr. R.K. Porwal, President (F&A) & CFO:
- Rs. 5,00,000 under Section 15HA of SEBI Act
- Rs. 1,00,000 under Section 15HB of SEBI Act
- Total Penalty: Rs. 6,00,000
The total penalty imposed on Jaiprakash Power Ventures Limited and its officials amounts to Rs. 38,00,000.
Company's Response and Next Steps:
In its communication, Jaiprakash Power Ventures mentioned that it is currently evaluating the impact of the SEBI Adjudication Order. The company is seeking legal advice to determine the appropriate course of action in response to the penalties. While the order may have financial and operational consequences, the company has expressed its intent to address the issues raised and ensure compliance moving forward.
Impact on Operations:
The immediate impact on the financial and operational activities of the company appears limited, as no further details on potential financial losses were mentioned. However, the company's reputation and standing in the market may be affected by the adjudication.