Reliance Communication settles listing norm case with SEBI, pays Rs 6.24 million as penalty

The debt-laden Reliance Communication has settled a case with the Securities and Exchange Board of India (SEBI) by paying an amount of Rs 62.40 lakh.

Reliance Communication had an issue of not informing the default in payment to the debenture trustee. (Image: PTI

New Delhi: The debt-laden Reliance Communication has settled a case with the Securities and Exchange Board of India (SEBI) by paying an amount of Rs 62.40 lakh over alleged non-cooperation with credit rating agencies and debenture trustee, the market regulator informed on Friday. “Reliance Communications Limited filed a suo moto application in terms of the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2014 proposing to settle, through a settlement order,” SEBI said in a statement. According to the reports, the Anil Ambani-led company also settled the issue of non-cooperation with the credit rating agencies and debenture trustee that were in violation of the listing norms. “The proceedings that could have been initiated for the defaults… are settled qua the applicant,” the SEBI order said. It also noted that Sebi shall not initiate any enforcement action against the applicant. A defaulter company is allowed to settle charges by paying a penalty charge without admission of the guilt under the aforementioned settlement mechanism. Reliance Communication had an issue of not informing the default in payment to the debenture trustee at the earliest possible and the other was pertaining to the non-submission of information in accordance with the change in credit rating. RComm was also charged for not sending the notices relating to the meeting of Non-Convertible Debentures (NCD) holders to the debenture trustee. SEBI in its statement also informed that the High Powered Advisory Committee in its meeting in September considered the terms of the proposed settlement and recommended the case be settled with the payment. According to reports, the authorised representatives of Reliance Communication had a meeting with the internal committee of Sebi on March 9, wherein the settlement terms were deliberated. “The initiated settlement order comes into force with immediate effect,” the statement read further. Earlier this month, Reliance Communication reported lower losses in second quarter of Financial Year 2019 (on a sequential basis) due to income of Rs 37 crore from other subsidiaries. Share price of Reliance Communications Ltd ended at Rs 14.20, up Rs 0.27, or 1.94 per cent, from its previous close of Rs 13.93 on the Bombay Stock Exchange (BSE).