Former Nesco independent director pays Rs 21.45 lakh to settle disclosure violation case with Sebi

Manu M Parpia, a former independent director of Nesco Ltd, on Wednesday settled with Sebi a case on alleged violation of disclosure and other regulatory norms after paying Rs 21.4 lakh towards settlement charges. The order came after the applicant (Manu M Parpia) proposed to settle the pending proceedings through a settlement order without "admitting or denying the findings of fact and conclusions of law".

"In exercise of the powers...Of the settlement regulations, it is hereby ordered that the instant proceedings initiated against the applicant vide show cause notice dated May 28, 2024, are disposed of," Sebi's Chief General Manager G Ramar said in the settlement order.

The Securities and Exchange Board of India (Sebi) conducted an examination in the matter of Nesco Ltd and Parpia after it received a report of Stakeholders Empowerment Services (SES) on October 20, 2023.

Thereafter, a show cause notice (SCN) was issued by the regulator to Manu Parpia on May 28, 2024.

The SCN alleged that Manu Parpia continued to serve on the board of the company for more than a year as an independent director even after the cessation of his tenure on May 9, 2022.

In view of the same, it was alleged that the applicant had violated provisions of responsibilities of the board of directors as enshrined under Principles governing disclosures and obligations allegedly violating LODR (Listing Obligations and Disclosure Requirements) rules.

Further, the regulator alleged that Parpia had given a misleading declaration on July 15, 2023, to the effect that he meets the criteria of independence and eligibility at the time of his appointment by the board of the company, which is in violation of the Companies Act, 2013, and LODR norms.

Pursuant to the receipt of the application, Parpia filed revised settlement terms and remitted the settlement amount of Rs 21.45 lakh, which was confirmed by Sebi and settled the matter.