Five Individuals Settle Regulatory Violation Case With Sebi

New Delhi: As many as five current and former officials of Add-Shop E-Retail Ltd (ASERL) and White Organic Agro Ltd (WOAL) on Thursday settled a case with Sebi pertaining violation of regulatory norms and made a payment of Rs 95.55 lakh towards the settlement amount.

ASERL is into the business of manufacturing, marketing and distribution of Ayurveda products and WOAL is engaged in the business of organic food items. The case was settled by Dadhania Vivek Gopalbhai, audit committee member of ASERL; Nirajkumar K Malaviya, company secretary and compliance officer of ASER;Jigna V Thakkar, audit committee member of WOAL; Dharmesh Bhanushali, audit committee chairman of WOAL; and Chandresh Regulations, former audit committee chairman of WOAL, each contributed to the settlement amount, Sebi said in its order. Of the total payment, Malaviya paid Rs 40.95 lakh, while the other four remitted Rs 13.65 lakh each.

This settlement followed an application from the entities requesting Securities and Exchange Board of India (SebI) to resolve the alleged violations "without admitting or denying the findings of fact and conclusions of law" under settlement regulations. Acknowledging the settlement, the regulator in its order on Thursday said, "In view of the acceptance of the settlement terms and receipt of... settlement amounts by Sebi, the specified proceedings initiated against the applicants vide interim order cum show cause notice dated May 6, 2024 are disposed of".

The case pertains to alleged violation of regulatory norms. The regulator examination began after receiving complaints during December 2021 and September 2023 against Add-Shop E-Retail Ltd and White Organic Agro Ltd alleging irregularities with respect to related-party transactions, fake announcements regarding supply orders etc.