The market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 10 lakh on Infrastructure Leasing & Financial Services (IL&FS) for non-disclosure of price-sensitive information to stock exchanges. As per the regulator's filing, IL&FS did not disclose to the stock exchange the decision of its board dated July 21, 2018, for raising equity capital by way of rights issue and the decision of its board dated August 29, 2018, with respect to specific asset disinvestment plan to reduce the overall debt by Rs 30,000 crore.
The filing stated that the listed companies are obligated to inform the market regulator on various segments such as bearing on the performance or operation of the listed entity, price-sensitive information or any action that will affect payment of interest or dividend of non-convertible preference shares or redemption of non-convertible debt securities or redeemable preference shares.
"The purpose of disclosures under the LODR (Listing Obligations and Disclosure Requirement) Regulations is to avoid false market of such securities and to clarify the position of these securities to their respective holders. The information pertaining to its board meeting dated August 29, 2018, was present and available in the public domain through the public statement released on the noticee's website on August 29, 2018," said the Sebi.
IL&FS group had collapsed late last year after massive defaults to the tune of over Rs 90,000 crore and suspected wrong-doings by the company's former top management.