Jumbo Finance Ltd. Settles case with SEBI after the payment of Rs. 44.2 lakh as Settlement Fee

Jumbo Finance Ltd. Settles case with SEBI after the payment of Rs. 44.2 lakh as Settlement Fee

Jumbo Finance Limited settled with the Securities Exchange Board of India (in short SEBI) a case on violation of regulatory norms in respect of equity shares issued by the company on a preferential basis after paying Rs. 44.2 lakh towards the settlement fee. This came after the company proposed to settle the proceedings initiated against it, "without admitting or denying the findings" through a settlement order.

After the SEBI found that the company violated Regulations 108(2), 74(1), 74(2) of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (in short ICDR), Regulation 73(1)(e) of Chapter VII of ICDR Regulations 2009 and Clause 24(a) of Listing Agreement read with Section 21 of Securities Contract Regulation Act, 1956 (hereinafter referred to as 'SCRA') read with Regulation 28(1) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (in short LODR Regulations).

In the show cause notice dated 13th April, 2022 issued, it was alleged that the listing application was not filed by Jumbo Finance within 20 days of the allotment of shares. Also, the allotment of shares was not made within 15 days of shareholder's approval.

In addition, it was alleged that out of 45 lakh equity shares allotted, 5.03 lakh equity shares were given to those allottees in excess of the approval granted by the shareholders through special resolution and prior approval given by the bourse exchange and 36.35 lakh equity shares were allotted to those allottees for which the company had not taken shareholder's nod as well as exchanges in principle approval.

Through these acts, the company alleged violated ICDR and LODR norms. Pending adjudication proceedings, the company settled the case after paying Rs. 44.2 lakh, SEBI stated in its order.