Wadia family settles SEBI disclosure violation case for Rs 2.13 cr

The disclosures regarding changes in BBTC's shareholding, required to be promptly reported to stock exchanges, were delayed by more than 3,000 days, according to a report by NDTV Profit.

One instance involved promoters failing to report changes exceeding 2% of total shares by the December 4, 2014 deadline, with the actual disclosure only made on July 27, 2023. Another similar disclosure, due in April 2015, was also delayed, the report said.

Wallace Brothers, part of the promoter group, also failed to disclose its shareholding on time, with delays exceeding 3,100 days.

The settlement covers individuals such as Nusli Wadia, Ness Wadia, and Jehangir Wadia, alongside entities including Nowrosjee Wadia & Sons, Wallace Brothers Trading and Industrial Ltd., and Bombay Dyeing & Manufacturing Co., according to SEBI's release on Friday.

Nusli Wadia and other applicants jointly paid Rs 1.46 crore, while Wallace Brothers contributed Rs 34.7 lakh separately. BBTC remitted Rs 31 lakh, with other individuals and entities settling smaller amounts, according to the report.

The case was resolved through SEBI's consent mechanism, which allows parties to settle allegations without admitting or denying guilt, the report said.

The settlement terms were finalised following meetings between the applicants and SEBI's internal committee and were approved by the high-powered advisory committee.

SEBI's whole-time members sanctioned the recommendations, and the settlement amounts were paid in November and December.

However, SEBI retains the authority to act if any representation made during the settlement process is found false or if the applicants breach settlement terms, the report added.