Cummins Inc, promoter of Automotive Axles Ltd, has settled with markets regulator Sebi a case pertaining to alleged violation of open offer lapses, after paying Rs 91.22 lakh as settlement charges.
The order came after the applicant (Cummins Inc) filed a settlement application for proposing to settle by neither 'admitting nor denying the guilt'.
"The proceedings that may be initiated for the violation are settled qua the Applicant," Sebi's Whole Time Members Ashwani Bhatia and Ananth Narayan G said in the settlement order.
The case relates to Cummins indirectly acquiring a 35.52 percent share in Automotive Axles Ltd (AAL).
The acquisition was contracted on February 21, 2022, which triggered the requirement of the public announcement of making of an open offer by the applicant under the SAST (Substantial Acquisition of Shares and Takeovers) norms.
The applicant was required to make a public announcement. However, it made the announcement belatedly with a delay of 227 days, according to a settlement order passed by Sebi on Monday.
In view of the same, Cummins was found to have violated the provisions of SAST rules.
The settlement application was filed before Sebi on February 9, 2023, and the High Powered Advisory Committee of the regulator on February 22, 2023, recommended that the case for settled upon payment of the settlement charges.
After Cummins paid Rs 91.22 lakh, Sebi issued the settlement order.
