SEBI Sends Rs 5-Lakh Notice To Future Enterprises In Disclosure Lapses Case
Future Enterprises had failed to disclose to SEBI information regarding initiation of arbitration proceedings against Future Group by Amazon.
The Securities and Exchange Board of India has sent a notice to Future Enterprises Ltd., asking it to pay more than Rs 5 lakh in a matter pertaining to disclosure lapses about initiation of arbitration proceedings against Future Group by Amazon.
The regulator also warned the company of attachment of assets and bank accounts if it fails to make the payment within 15 days.
The notice came after the company failed to pay the fine.
SEBI had in March slapped a fine of Rs 5 lakh on Future Enterprises for disclosure lapses in the case related to arbitration proceedings against Future Group by Amazon.com NV Investments Holdings LLC. Future Enterprises failed to disclose to the exchanges the information regarding the initiation of arbitration proceedings and also the passing of an order dated Oct. 25, 2020, in favour of Amazon.
In its notice, SEBI directed Future Enterprises to pay Rs 5.21 lakh, which includes penalty, interest and recovery cost, within 15 days.
In the event of non-payment of dues, SEBI will recover the amount by attaching and selling the company's moveable and immoveable properties. The firm also faces attachment of its bank accounts. The regulator can also take the route of arrest and detention in prison to recover the amount.