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Coffee Day Enterprises has settled allegations of violating the SEBI (Listing Obligations and Disclosure Requirements) Regulations, commonly known as LODR Regulations, by paying ₹7.52 lakh. This settlement addresses concerns related to the company’s failure to adequately disclose material events and information about its subsidiaries, as required under these regulations.
The Securities and Exchange Board of India (SEBI) issued an order on August 13, detailing the violations committed by Coffee Day Enterprises. The company was found to be non-compliant with Regulation 30, which governs the disclosure of significant events or information. Specifically, the breaches included failures under Regulation 30(1), which mandates that listed entities disclose material events as determined by their board of directors; Regulation 30(2), which specifies the types of events considered material and necessitates disclosure; and Regulation 30(9), which requires disclosure of all material information related to subsidiaries.
SEBI had previously issued a show-cause notice to Coffee Day Enterprises on October 16, 2023. The notice questioned why the company should not face an inquiry and possible penalties under Section 23A(a) of the SCR Act due to these infractions. The company’s lack of disclosure concerning critical material and subsidiary-related information prompted this regulatory scrutiny.
By agreeing to the settlement and paying the fine, Coffee Day Enterprises has opted to resolve the matter without undergoing further legal proceedings. This decision highlights the significance of adherence to disclosure regulations and serves as a reminder to all listed entities about the necessity of timely and accurate information sharing.