Disclosure Lapses Case: SEBI Sends Rs 5 Lakh Notice To Future Enterprises

The notice came after Future Enterprises failed to pay the fine imposed on it by the market regulator.

New Delhi:

Capital markets regulator SEBI on Wednesday sent a notice to Future Enterprises asking it to pay over Rs 5 lakh in a matter pertaining to disclosure lapses about initiation of arbitration proceedings against Future Group by Amazon.

The regulator also warned the company of attachment of assets and bank accounts if it fails to make the payment within 15 days.

The notice came after the company failed to pay the fine imposed on it by the Securities and Exchange Board of India (SEBI).

In an order passed in March, the capital markets regulator had slapped a fine of Rs 5 lakh on Future Enterprises for disclosure lapses in the case related to arbitration proceedings against Future Group by Amazon.com NV Investments Holdings LLC.

Future Enterprises failed to disclose to the exchanges the information regarding the initiation of arbitration proceedings and also the passing of an order dated October 25, 2020 in favour of Amazon.

In its notice, SEBI directed Future Enterprises to pay Rs 5.21 lakh, which includes penalty, interest and recovery cost, within 15 days.

In the event of non-payment of dues, the markets regulator will recover the amount by attaching and selling the company’s moveable and immoveable properties. Besides, the firm faces attachment of its bank accounts.

The regulator can also take the route of arrest and detention in prison to recover the amount.

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