Markets regulator SEBI slapped a fine of Rs 15 lakh on debt-ridden Amtek Auto for failing to make NCD redemptions on due date and not disclosing to the bourses about rating downgrade.
It was alleged that the auto firm had not notified the exchanges about downgrade of the credit rating, the delay in redemption and payment of interest, and certain other violations of the listing agreement, including selective redemption.
The regulator in 2016 appointed an adjudicating officer to inquire into and adjudge the alleged violations of the relevant provisions of the SEBI Act and equity listing as well as debt listing agreement, among others by the company.
Amtek Auto, in September 2010, issued non-convertible debentures (NCDs) of Rs 800 crore by way of private placement memorandum which was due for redemption in September 2015.
According to SEBI, the company failed to make the redemption on the due date of payment.
Further, the regulator noted that 56 NCD holders were paid ahead of the total 212 NCD holders in the issue.
"Thus, there is a clear admission of the company on records that it had redeemed NCDs of select investors over others," it added.
(with news agency inputs)