DIC India pays ₹34.32 lakh to settle disclosure norm violation case with SEBI

DIC India has settled a case with capital markets regulator SEBI pertaining to alleged violation of disclosure lapses after paying ₹34.32 lakh towards the settlement amount.

DIC India, a manufacturer of printing inks and allied products, had filed suo motu settlement applications in terms of the SEBI's (Settlement Proceedings) regulations, the regulator said in an order on March 21.

The company proposed to settle by neither "admitting nor denying the findings of fact and conclusions of law" the enforcement proceedings that may be initiated against it for the violation of rules.

As per the settlement order, the markets watchdog will not initiate enforcement proceedings against DIC India for the violations.

However, SEBI retains the right to take further action if any misrepresentation is discovered or if the company breaches any terms of the settlement.

"...it is hereby ordered that any proceedings that may be initiated for the violations are settled in respect of the applicant (DIC India)," SEBI's whole-time members Amarjeet Singh and Kamlesh C Varshney said in the order.

According to the order, SEBI found that DIC India was in violation of multiple LODR (Listing Obligations and Disclosure Requirements) rules.

The company had failed to take the recommendations from its Nomination and Remuneration Committee in relation to the appointment of its Head of Sales and Marketing, thereby flouting LODR norms.

Additionally, DIC India did not disclose changes in its senior management, including the appointment of Kuldeep Sharma as the Head of Sales and Marketing on May 1, 2024, and the resignation of his predecessor on January 5, 2024.

These delayed disclosures were eventually made by the company on August 10, 2024.

Further, SEBI also observed that DIC India failed to disclose the remuneration of its key managerial personnel while submitting its related party transactions disclosure to the stock exchange for the period from June 30, 2022, to December 31, 2023.

The company also did not publish the required details on its website, violating disclosure norms, the order said.

Following the applications, the company filed revised settlement terms, which were approved by SEBI's high-powered advisory committee.

Accordingly, DIC India remitted the amount and settled the matter with SEBI.