Capital markets regulator Sebi has imposed a penalty of Rs 1 lakh on Bharti Infratel, now referred to as Indus Towers, for flouting guidelines pertaining to worker inventory choice schemes. In its order, Sebi discovered that Bharti Infratel violated the provisions of the SBEB (Share Based Employee Benefits) by not appropriating the surplus 5,32,862 shares of the corporate throughout the stipulated timeline of March 31, 2017.
In its exemption software filed by the corporate in October 2019, Bharti Infratel knowledgeable Sebi that it has a surplus of 5,32,862 shares of the corporate in ESOP Trust as on March 31, 2017, which couldn’t be appropriated when it comes to SBEB guidelines. Bharti Infratel’s identify was modified to Indus Towers in December 2020, following the merger of Bharti Infratel and Indus Towers.
As the shares acquired by means of the secondary market have been locked in for a interval of six months beneath the foundations, the corporate as an alternative issued contemporary shares in FY 2015-16 towards choices that have been exercised by staff.These shares are the steadiness shares remaining within the ESOP Trust that have been acquired between February and March 2015 within the secondary market towards ample dwell choices.These shares, nonetheless, subsequently grew to become unappropriated on account of non-utilisation of such shares for switch to staff owing to the requirement of necessary lock-in interval of six months relevant for secondary acquisition beneath the foundations.
The firm was required to align its schemes with the SBEB Regulations, which it didn’t do.”The noticee after utilising the time out there and thereafter delaying any motion on its half for two.5 years, at this stage can not take the plea that it was prejudiced by regulatory restrictions.
“Therefore, it is noted that the noticee is belatedly taking shelter under an assumed limitation of the SBEB Regulations while it had all along known the applicability of the SBEB Regulations and the need for compliance on or before March 31, 2017,” Sebi mentioned in its order handed on Monday.Accordingly, the markets regulator has imposed “a penalty of Rs 1 lakh on the Noticee viz. Bharti Infratel Limited (now known as Indus Towers Limited) under the provisions of … the Sebi Act for the violation of … of the SBEB Regulations by the noticee,” the Sebi order mentioned.
Source: www.financialexpress.com”