Business

SEBI Slaps Rs 5 Lakh Penalty On AGI Greenpac For Disclosure Failures In HNG Acquisition Deal

In a significant move, the Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 5 lakh on AGI Greenpac, a packaging products company, citing its failure to provide accurate and adequate disclosure concerning its acquisition deal with Hindustan National Glass (HNG).

Case So Far:

The penalty stems from what SEBI deems as a misrepresentation of crucial information to the stock exchanges.

AGI Greenpac initiated the regulatory action by withholding vital details regarding its acquisition of HNG, India’s premier container glass-making enterprise.

SEBI’s order highlights AGI Greenpac’s lapse in disclosing material developments related to its submissions to the exchanges on 31 October 2022, and 16 March 2023.

Specifically, SEBI noted that AGI Greenpac neglected to reveal essential information pertaining to a show-cause notice issued by the Competition Commission of India (CCI), modifications to its application submitted to the CCI, and legal proceedings concerning the CCI’s approval of the proposed AGI-HNG combination.

During the period from April to October 2023, AGI Greenpac’s stock witnessed a remarkable surge, soaring by 236 percent from Rs 334 to Rs 1,089.

AGI Greenpac anticipated that its acquisition of HNG would position it as the leading player in India’s container glass industry.

However, the CCI raised concerns, suggesting that the proposed transaction could potentially impede competition in relevant markets.

Preceding SEBI’s penalty, Justice Vikramajit Sen, former Chief Justice of the Karnataka High Court and a Supreme Court judge, remarked that AGI Greenpac had provided “partial and deceitful disclosure” regarding CCI approval.

The SEBI order stipulates that failure to remit the penalty within 45 days could result in further actions, including recovery proceedings under Section 28A of the SEBI Act, 1992, to collect the penalty amount along with accrued interest, potentially through the attachment and sale of movable and immovable assets.

Following the announcement of the penalty, AGI Greenpac’s stock closed at Rs 667.35 on Tuesday, marking a decline of 2.85 percent.

Also Read: Adani Group Denies Speculations Of Stake Acquisition In Paytm

Mankrit Kaur

Recent Posts

Pakistan’s Digital Frontline: Jokes, Memes And Savage Self-Roasts

While tensions between India and Pakistan escalate post the tragic Pahalgam terror attack, something unexpected…

5 hours ago

Reliance Industries Q4 Net Profit Rises 6.4% As Retail And Digital Units Offset Energy Weakness

Reliance Industries delivered a strong Q4 FY25 performance, with Y-o-Y net profit rising 6.4% to…

5 hours ago

Yash Pratap Singh And Mehak Jaiswal Top UP Board Exams With Outstanding Scores

Yash Pratap Singh of Jalaun tops Class 10 with 97.83%, while Prayagraj’s Mehak Jaiswal secures…

5 hours ago

Yogi Adityanath Calls For Reforms To Make Madrasa Education Modern And Employment-Oriented

Chief Minister Yogi Adityanath on Friday emphasised the need for sweeping reforms in the madrasa…

6 hours ago

Tulsi Gabbard Backs India’s Hunt For Pahalgam Terror Attack Perpetrators

United States Director of National Intelligence (DNI) Tulsi Gabbard on Friday expressed strong support for…

7 hours ago

World Leaders Head To Rome For funeral Of Pope Francis

Indian President Droupadi Murmu will also attend, representing India alongside Union Minister Kiren Rijiju, Minister…

8 hours ago