CA Sansaar
SEBI issues show cause notice to ZEEL over alleged irregularities
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SEBI has issued a show-cause notice (SCN) to ZEEL, to one of its current Key Managerial Personnel (KMP), and to a former director, alleging violations of SEBI regulations in connection with a lien on a property for the financial year 2018-19.
ZEEL states that it has furnished a detailed reply denying the allegations. ZEEL also says it has filed a settlement application under the SEBI (Settlement Proceedings) Regulations, 2018. That application is under consideration.
In its internal governance response, ZEEL’s Board had earlier constituted an Independent Investigation Committee (IIC) to look into certain transactions with vendors and a subsidiary, especially in light of the ongoing SEBI investigation and an inspection by the Ministry of Corporate Affairs (MCA). The IIC’s report reportedly concluded that there were no material irregularities and that the transactions were in the normal course of business.
ZEEL states that, after review of its records and those of its subsidiaries, the contested transactions (including refunds) were backed by valid goods and services received.
ZEEL states that it has furnished a detailed reply denying the allegations. ZEEL also says it has filed a settlement application under the SEBI (Settlement Proceedings) Regulations, 2018. That application is under consideration.
In its internal governance response, ZEEL’s Board had earlier constituted an Independent Investigation Committee (IIC) to look into certain transactions with vendors and a subsidiary, especially in light of the ongoing SEBI investigation and an inspection by the Ministry of Corporate Affairs (MCA). The IIC’s report reportedly concluded that there were no material irregularities and that the transactions were in the normal course of business.
ZEEL states that, after review of its records and those of its subsidiaries, the contested transactions (including refunds) were backed by valid goods and services received.
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