SEBI alleges Madhav Copper delayed GST search disclosure

This order addresses alleged violations by Madhav Copper Limited regarding the delayed or non-disclosure of material events related to GST authority actions, such as searches, asset attachments, and registration cancellation, in violation of SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations.

Who it concerns: Madhav Copper Limited

What SEBI found or ordered

• SEBI alleged the company violated LODR Regulations by delaying disclosure of a GST search and provisional attachment of assets in July 2021.
• SEBI alleged the company failed to disclose actions initiated under the CGST/GGST Act and the cancellation of its GST registration.
• The company admitted to unintentional delays and inadvertent mistakes but argued it acted in good faith and relied on materiality policies.
• The company initially filed for settlement but later rejected the settlement terms, leading to the resumption of adjudication proceedings.
• The Adjudicating Officer is examining whether the violations attract a monetary penalty under Section 15A(b) of the SEBI Act.

Also in the document

• The order is currently at the stage of considering issues and evidence; no final penalty amount or bar order is stated in the provided text.
• The company cited the revocation of its GST registration in April 2023 as a reason for the timing of its disclosures.
• The proceedings were kept in abeyance for a period while the company considered a settlement application.