Why Coffee Day Enterprises Paid Rs 69 Lakh To SEBI

Coffee Day Enterprises has paid the Securities and Exchange Board of India Rs 69 lakh to settle a complaint involving alleged disclosure standard violations (SEBI).

On February 18, 2018, the company filed an application for settlement under the SEBI (Settlement Proceedings) Regulations, 2018, following the issuance of a show-cause notice.

In a settlement decision, Sebi stated, "It is hereby ordered that the existing adjudication proceedings launched against Coffee Day Enterprises Ltd under the... SCN (show-cause notice) dated January 21, 2021, is hereby disposed of."

One of the complaints leveled against the company was that no limited review report was presented to the board of directors at its meetings on November 13, 2019 and January 29, 2020, when the financial results for the quarters ending June 30, 2019 and September 30, 2019, were approved.

Furthermore, the company presented unaudited financial figures for the quarters ended June 30, 2019, and September 30, 2019, which were not subjected to statutory auditors' limited examination. Furthermore, the corporation was accused of exceeding the 24-hour deadline for disclosing information to stock exchanges about Sanjay Nayar's resignation as a non-executive director.

Furthermore, the disclosure of a two-day delay in the payment of interest or return of principal amounts on loans for the quarter ended December 2019 was allegedly delayed by two days.

"However, the details of the sale of Way2Wealth as stipulated in the SEBI circular No CIR/CFD/CMD/4/2015 dated September 9, 2015, were not disclosed by the company," the settlement order said.

According to Sebi, the company posted the details of the Way2Wealth sale to the stock exchanges on August 31, 2020, rather than earlier, because the firm was about to inform after receiving final permissions from statutory regulators and completion of the sale process.

Furthermore, the corporation allegedly failed to notify the stock markets of the auditor's resignation letter. The auditor's resignation letter included comprehensive reasons for his departure, which had to be made public.

According to the Securities and Exchange Board of India (Sebi), the corporation has reportedly violated the terms of the LODR regulations by such actions.

According to the firm that manages the Cafe Coffee Day chain, the details of Way2Wealth's sale were emailed to the stock exchange on January 31, 2020. The NSE highlighted, however, that the company did not file the information on the specialised NEAPS filing system for dissemination.

Following that, the firm stated that the details of Way2Wealth's sale were uploaded to the stock exchanges on August 31, 2020, rather than earlier as the company had planned to do after receiving final permissions from statutory regulators and completing the selling process.

Following that, Coffee Day Enterprises paid Rs 69.06 lakh towards the settlement sum, as per the settlement terms accepted by the panel of full-time members, and the case was closed.