Both the exchanges have levied a fine of Rs 28,000 each.
Sebi rules state that no listed entity shall appoint a person or continue the directorship as a non-executive director who has attained the age of 75 years unless a special resolution is passed to that effect.
However, the company said imposition of fine by BSE and NSE is improper, since the shareholders’ approval was obtained in accordance with applicable laws.
Adani Enterprises further said the interpretation of the law was settled in the matter of Nectar Life Sciences vs Sebi. In that case, SAT observed that the word “unless” depicted in the rule does not mean “prior approval” nor the requirement of passing a special resolution is a qualificatory condition for appointment of a person as a director.
“We further wish to submit that Regulation 17(1A) should be read in conjunction with the regulation 17(1C) of Sebi listing regulations. These regulations do not use the word “prior approval” for any appointment / reappointment and allows a company to regularize the appointment / reappointment at the next general meeting or within a period of three months, whichever is earlier,” the company added.
Adani Enterprises is in the process of making applications to NSE and BSE with detailed justifications highlighting that the company is in due compliance with provisions of Sebi listing regulations and requesting for waiver of fines, imposed by the respective authorities.”The intent of legislation is clear that prior approval is not required for such appointment/re-appointment, and hence, there is no non-compliance of provisions of Sebi listing rules,” it said.
On Tuesday, the company’s shares closed 2.09% higher at Rs 2,694.90 on NSE. Despite recovering some lost ground following the Hindenburg allegations, the stock is still down nearly 30% on a year-to-date basis.
Denial of responsibility! My Droll is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
