Sebi slaps Rs 50 lakh fine on Kishore Biyani, others for disclosure lapses

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New Delhi, May 12 (PTI) Markets regulator Sebi on Tuesday imposed a total penalty of Rs 50 lakh on three former officials of Future Retail Ltd (FRL), including Kishore Biyani for failing to comply with disclosure rules.

Apart from Kishore Biyani, who was chairman and managing director, other top executives of the company penalised by Sebi are former MD Rakesh Biyani and the ex-Chief Financial Officer (CFO) CP Toshniwal, according to an order passed by the Securities and Exchange Board of India.

Biyanis were levied a fine of Rs 20 lakh each, while a Rs 10 lakh penalty was imposed on Toshniwal.

The case pertains to violations of omitting the disclosure of certain related parties and RPTs (Related Party Transactions) in the annual report, or failing

to seek approval from the audit committee or shareholders, as applicable.

“This case is not a case of complete defiance but a case of partial disclosures,” Sebi said in its 202-page order.

Sebi added, “FRL had repeatedly defaulted in disclosing the related party status and RPTs and in seeking the approval of the audit committee and the shareholders”.

It further said that noticees No.1 and 2 (Biyanis) are vicariously liable for this default and Noticee No. 3 (Toshniwal)is liable for abetting the default’s occurrence.

“Despite such persistent defaults, Noticee No. 1 and 2 have been placating the concerns of the Audit Committee, informing that everything was in order in FRL,” the order mentioned.

Through such acts, the officials violated the provisions of the LODR (Listing Obligations and Disclosure Requirements) Regulations, and accordingly, Sebi imposed the penalty.

They have been directed to pay the fine within 45 days.

FRL is lingering on in the liquidation process before the National Company Law Tribunal (NCLT). In July 2022, the NCLT admitted FRL to the Corporate Insolvency Resolution Process (CIRP) and appointed a Resolution Professional under the Insolvency and Bankruptcy Code, 2016 (IBC). PTI SP SHM