INSUBCONTINENT EXCLUSIVE:
New Delhi: Markets regulator Sebi on Monday disposed of adjudicating proceedings initiated against ABG Shipyard, for allegedly not making
requisite disclosure under the Listing norms, as the company is under liquidation.
ABG Shipyard is undergoing insolvency proceedings under
the Insolvency and Bankruptcy Code (IBC, 2016) as per the National Company Law Tribunal (NCLT) orders.
In an order, the Securities and
Exchange Board of India (Sebi) noted that it is mandatory and a pre-condition to obtain the leave of NCLT for commencing instant proceedings
against the company, which is under liquidation.
However, the regulator said leave of NCLT has not been taken in the instant
proceedings.
"The adjudication proceedings against the noticee (ABG Shipyard) have been initiated on August 8, 2019 which is after the order
of commencement of liquidation dated April 25, 2019 and without the leave of the NCLT," Sebi said.
Accordingly, the regulator said the
"adjudication proceedings initiated against the noticee vide order dated August 8, 2019 and SCN dated October 18, 2019 are infructuous and
therefore, cannot be proceeded with
The matter is, accordingly, disposed of."
The markets watchdog examined the status of compliance with the provisions of Listing Obligations
and Disclosure Requirements or LODR by ABG Shipyard and observed that it did not make requisite disclosure under the
regulations.
Consequently, Sebi appointed an adjudicating officer on August 8 to inquire into the matter and show cause notice was issued on
October 18.
ABG Shipyard owes about Rs 17,000 crore to the lenders and the shipbuilder was referred by the Reserve Bank of India for
bankruptcy resolution.
Incorporated in 1985, ABG Shipyard is the flagship company of ABG Group with interests in shipping and cement