Shares of PC Jeweller rallied 11 percent intraday on November 6 after the company settled the share buyback case with capital market regulator SEBI.
SEBI said adjudication proceedings against the company have been disposed off.
The company paid Rs 19,12,500 towards full and final settlement of the alleged default, it added.
The matter pertains to the company’s buyback offer that was approved by its board on May 10, 2018.
However, State Bank of India (SBI) objected to the offer through two separate letters issued in July. Subsequently, the company’s board of directors decided to withdraw the offer and the same was informed to stock exchanges on July 13.
The regulator had observed that PC Jeweller had not disclosed SBI objections raised through letters dated July 7 and 12, 2018.
“SEBI has found that non-disclosure of SBI’s objections by PC Jeweller is material information and requires to be disclosed to the stock exchanges…,” the order said.
Adjudication proceedings were initiated and a show-cause notice was issued to the company on March 6. On April 5, the firm filed a settlement application, which was later accepted.
The stock was quoting at Rs 35.05, up Rs 2.70, or 8.35 percent on the BSE at 1052 hours IST.
News Source: Moneycontrol