PC Jeweller share price rose in afternoon trade today on report that the firm had settled a case with the market regulator Securities and Exchange Board of India (SEBI) regarding alleged non-disclosure of certain information about a buyback offer that was withdrawn later. PC Jeweller share price rose up to 12.21% to Rs 36.3 compared to the previous close of Rs 32.25 on BSE.
However, PC Jeweller share price has lost 57.11% during last one year and fallen 58.5% since the beginning of this year.
The company paid Rs 19.12 lakh towards full and final settlement of the alleged default, according to an order passed by Sebi with immediate effect on November 5. The matter relates to the company's buyback offer that was approved by its board on May 10, 2018.
However, State Bank of India objected to the offer through two separate letters issued in July. Subsequently, the company's board of directors decided to withdraw the offer and the same was informed to stock exchanges on July 13. The regulator had observed that PC Jeweller had not disclosed SBI objections raised through letters dated July 7 and 12, 2018.
"SEBI has found that non-disclosure of SBI's objections by PC Jeweller is a material information and required to be disclosed to the stock exchanges...," the order said.
Adjudication proceedings were initiated and a show-cause notice was issued to the company on March 6. On April 5, the firm filed a settlement application, which was later accepted.
By Aseem Thapliyal