Business

SEBI: Preventing Violators from Escaping Justice is Crucial for Upholding Larger Public Interest

New Delhi, April 10 (IANS) Markets regulator SEBI has imposed a penalty of Rs 2 lakh on Williamson Magor and Company Ltd (WMCL) in an adjudication order. SEBI stated that the larger public purpose of investor protection would be compromised if violators are let off due to delays.

SEBI emphasized that the SEBI Act, 1992, and its regulations aim to protect investors and regulate the securities market. The order highlighted that allowing violators to escape consequences due to delays in taking action would defeat these purposes.

According to the complaint, WMCL engaged in a related party transaction with Babcock Borsig Ltd without necessary approvals or disclosures. The SEBI found that WMCL did not comply with the requirements of the Equity Listing Agreement, leading to the imposition of the penalty.

The noticee claimed that board approval sufficed for the transaction and audit committee approval was not necessary. However, SEBI determined that WMCL did not adhere to the stipulations of the Equity Listing Agreement, warranting the monetary penalty as a deterrent for future violations.

SEBI’s decision to penalize WMCL underscores the importance of upholding regulations in the securities market to safeguard investor interests. This move serves as a warning to entities engaging in related party transactions without following the requisite procedures.

IANS

IANS, established in 1986, is India's largest independent news service, offering 24x7 news from India and South Asia, and a preferred source for diverse content across six business verticals.

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