SEBI imposed heavy fine on this company, action taken for giving wrong information to stock exchanges
Market regulator Securities and Exchange Board of India (SEBI) has imposed a fine of Rs 5 lakh on packaging products company AGI Greenpack for furnishing false information to stock exchanges by failing to provide accurate, adequate and clear information. The SEBI order has accused the company of hiding material information regarding the deal to acquire Hindustan National Glass (HNG), India’s oldest and largest container glass maker. It was found that AGI Greenpack also failed to disclose significant developments with respect to the disclosures made to the exchanges on October 31, 2022, and March 16, 2023, IANS reported.
Fail to disclose information
According to the news, SEBI said that the company will respond to the show cause notice issued by the Competition Commission of India (CCI), submit amendments to the application filed by AGI to CCI and the litigation related to the CCI order approving the proposed combination of AGI and HNG. Failed to disclose important relevant information. Between April and October 2023, AGI shares saw a growth of 236 percent.
potential for adverse effects
HNG was acquired by AGI to make it the largest player in the container glass industry in the country. However, CCI formed a prima facie opinion that the proposed transaction is likely to have a significant adverse impact on competition (AAEC) in the relevant markets. Before the SEBI order, Justice Vikramjit Sen, former Chief Justice of the Karnataka High Court and Supreme Court judge, had said that AGI had made partial and fraudulent disclosures about CCI approvals.
SEBI may initiate consequential action
In case of non-payment of the said amount of penalty within 45 days of receipt of this order, SEBI may initiate consequential action under Section 28A of the SEBI Act, 1992 for recovery of the said amount of penalty and interest thereon. Recovery proceedings under this Act include, but are not limited to, inter alia, attachment and sale of movable and immovable properties.
