SEBI Passes Settlement Order in Respect of Two Promoters of Asian Hotels (W) Ltd.

SEBI Passes Settlement Order in Respect of Two Promoters of Asian Hotels (W) Ltd.

The Securities and Exchange Board of India (SEBI) has passed settlement order in respect of two promoters of Asian Hotels (W) Ltd namely, Vinita Gupta and Sandeep Gupta, in a case pertaining to alleged violation of disclosure norms.

Vinita Gupta and Sandeep Gupta, promoters of BSE and NSE-listed entity Asian Hotels (W) Ltd, paid Rs. 29.25 lakhs each as the settlement fee.

SEBI had initiated adjudication proceedings under section 15A(a) and 15HB of Securities and Exchange Board of India Act, 1992 (SEBI Act) against the Applicants for the alleged violation of regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2011 (LODR Regulations), read with SEBI circular dated 21 November, 2019, regulation 30(2) read with Schedule III of LODR Regulations and SEBI circular dated 18 October, 2019 and regulation 4(2)(f) of LODR Regulations.

A show cause notice was issued to the applicants for the alleged violation of norms, the regulator said.

Later, the applicants filed a settlement application with SEBI, with the proposal to settle the instant proceedings initiated against them, without admitting or denying the findings of facts and conclusions of law, through a settlement order and filed a settlement application with SEBI bearing Settlement Application dated 21 November, 2022 in terms of the provisions of SEBI (Settlement Proceedings) Regulations, 2018 (Settlement Regulations).

After attending meeting with the Internal Committee of SEBI on 2 February, 2023 in terms of the Settlement Regulations, Applicants vide email dated 6 February, 2023, proposed revised settlement terms.

The High-Powered Advisory Committee (HPAC) in its meeting held on 22 February, 2023, considering the settlement terms proposed and recommended that the case may be settled upon payment of Rs. 29,25,000 by Applicant 1 and Rs. 29,25,000 by Applicant 2 as settlement amount towards the settlement terms.

The Panel of Whole Time Members of SEBI approved the said recommendation of the HPAC on 2 May, 2023 and the same was communicated by SEBI to applicants on 9 June, 2023.

Subsequently, the applicant vide email dated 28 June, 2023 informed about the remittance of the settlement amount, the receipt of which was confirmed.

The SEBI in its order observed, “Therefore, in view of the acceptance of the settlement terms and the receipt of settlement amount as above by SEBI, the instant adjudication proceedings initiated against Applicants vide SCN dated June 30, 2022 is disposed of in terms of section 15JB of the SEBI Act read with regulation 23(1) of the Settlement Regulations on the basis of the settlement terms.”

Accordingly, SEBI passed the settlement and stated that the same shall come into force with immediate effect.