SEBI passes Settlement order in case of Promoters of Lyka Labs: Pay Rs. 3.07 Lakh as Settlement Charges
The Securities Exchange Board of India (SEBI) has passed a settlement order in respect of the promoters of Lyka Labs Limited, which had filed a separate suo motu Settlement Applications proposing to settle by neither admitting nor denying the findings of fact and conclusions of law, the enforcement proceedings that may be initiated against them by paying Rs. 3,07,500.
Applicants Kunal N Gandhi and Nehal N Gandhi, promoters of Lyka Labs settled with capital markets regulator SEBI a case regarding alleged violation of disclosure lapses.
Ipca Laboratories Limited made an open offer for the purchase of shares of Lyka Labs Limited (Target Company) under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (“SAST Regulations”) in November, 2021.
During the course of Open Offer, certain instances of delayed disclosures by the promoters of the Target Company under Regulations 31 of the SAST Regulations were intimated by the Merchant Banker to SEBI. It was observed that there were three instances of delayed disclosure in respect of which the disclosures were made with a delay of 20 days, 32 days and 37 days respectively.
Pursuant to the receipt of the Applications, the authorized representatives of the Applicants had a meeting with the Internal Committee of SEBI on November 16, 2022. The Internal Committee deliberated on the aspect of the delayed disclosures and suggested the terms of the settlement.
Thereafter, the Applicants proposed revised settlement terms dated 17 November, 2022 which was received by SEBI on 02 December, 2022, to settle the proceedings that may be initiated against them.
The applications were placed before the High-Powered Advisory Committee (“HPAC”) in its meeting held on 14 December, 2022, which considered the facts of the case and the revised settlement terms proposed by the applicant and recommended the case for settlement upon payment of Rs. 3,07,500 on the basis of joint and several liability.
The recommendation of the HPAC was accepted by the Panel of WTMs on 18 January, 2023 and the Notice of Demand was issued to the Applicants on 02 February, 2023.
After Kunal N Gandhi and Nehal N Gandhi paid the respective amount of Rs 3.07 lakh, SEBI issued the settlement order.
SEBI’s Whole Time Members Ashwani Bhatia and Ananth Narayan G, observed, “the proceedings that may be initiated against the applicants for the violations are settled qua the applicants.”