Tata Technologies settled with SEBI for an alleged violation of disclosure and investor protection guidelines by paying a settlement amount of Rs 25 lakh.
Justification
Tata Technologies proposed the settlement through a suo moto application without admitting or denying any conclusions.
SEBI settled the proceedings related to the alleged violations in its order dated September 27, 2023.
Tata Technologies had made preferential allotments multiple times between December 27, 2000, and March 13, 2008, issuing shares to over 49 shareholders in a single financial year, violating SEBI's Disclosure and Investor Protection guidelines.
Tata Motors, the promoter of Tata Technologies, was required to make an offer to eligible equity shareholders of Tata Technologies on November 11, 2022, for them to tender their shares and obtain a refund. However, no eligible shareholders tendered their shares to the promoter.
The National Company Law Tribunal (NCLT) had previously approved compounding, subject to Tata Technologies paying compounding fees of Rs 3.42 crore.
