Why PC Jeweller received show cause notice from Sebi? Stock tanks 5%; key details

Shares of the New Delhi-based jewellery maker PC Jeweller Ltd were locked at 5 per cent lower circuit limit in Tuesday's trade after the markets regulator Sebi sent a show cause notice under Rule 4(1) of the SEBI Rules, 1995, alleging non-compliance of certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) and SEBI Circular dated November 21, 2019 with regard to disclosures required in the matter of the company’s accounts turning NPA, legal cases, resolution plan etc. 

PC Jeweller insisted it has been disclosing the relevant information in its quarterly results as well as results presentations and is therefore of the opinion that the aforesaid show cause notice is not likely to have any material impact on the financial, operational or other activities of the Company as these information’s are already in the public domain. 

"All the legal cases are also currently sub-judice with no final ruling/judgement. The aforesaid SCN also provides a settlement mechanism under the SEBI (Settlement Proceedings) Regulations, 2018 and the Company believes that all the aforesaid alleged non-compliances are covered under the same. It is at the same time availing legal advice with respect to the SCN and would take appropriate action in this matter in the due course of time," PC Jeweller said.

This information is being provided pursuant to Regulation 30 the LODR Regulations.