A Sebi ruling that fined Essar Steel India Ltd, now known as ArcelorMittal Nippon Steel India Ltd, Rs 2 lakh for disclosure violations, has been set aside by the Securities Appellate Tribunal (SAT).
Bankruptcy proceedings were started against debt-laden Essar Steel in August 2017. After the completion of the corporate insolvency resolution process Essar Steel was taken over by the new management ArcelorMittal Nippon Steel India in December 2019.
"The impugned order dated March 28, 2022 cannot be sustained and is quashed. However, it will be open to the respondent Sebi to initiate proceedings for the relevant period against the relevant companies,"
The Appellate Tribunal said in an order passed on July 1. The ruling comes after an appeal was filed against the Sebi order that had levied Rs 2 lakh fine on Essar Steel for not making the requisite disclosure under “Listing Obligations and Disclosure Requirements” rules in the case pertaining to issuance of non-convertible debt securities in 2011.
It was alleged violation of LODR rules by Essar Steel for the December 2015 to March 2019 period. In October 2019, the regulator had issued a show cause notice asking why an inquiry should not be initiated and penalty should not be imposed on the company.
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