SEBI has barred Parsvnath Developers from the securities market for six months and imposed a penalty of Rs 15 lakh on the company for flouting listing rules.
The company has been directed to pay the fine within 45 days, the Securities and Exchange Board of India (Sebi) said in an order.
SEBI found that Parsvnath Developers Ltd (PDL) failed to make provision for the outstanding amount in ledger accounts of contractors and sub-contractors and also failed to strictly comply with Accounting Standards 7 or AS 7, which deals with construction contracts.
''Thus, I find that PDL to that extent failed in presenting a true and fair view of the state of affairs of the company in compliance with the mandate contained in Accounting Standards and thereby, violated provisions of ... the erstwhile Listing Agreement,'' SEBI Whole Time Member Ananta Barua said.
The erstwhile Listing Agreement cast an obligation on the listed company to abide by certain mandates related to disclosures, corporate processes, corporate governance, etc. and such provisions cast the liability on the listed entity.
''I find that obligation to abide by the erstwhile Listing Agreement was on PDL and since, the financials of PDL for the period of FY 2009-10 to FY 2011-12, did not represent the true and fair view of the state of affairs of PDL... I find that PDL has violated... the erstwhile Listing Agreement,'' he added.
The erstwhile Listing Agreement is not in force at present so these violations will be considered LODR (Listing Obligations and Disclosure Requirements) Regulations. Accordingly, ''Notice no 1 (Parsvnath Developers Ltd) is restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of six months,'' the regulator said in its order passed on Wednesday.
This order comes into force with immediate effect, it added.
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