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News Topical, Digital Desk : Market regulator SEBI (Securities and Exchange Board of India) has moved NCLT (National Company Law Tribunal) based on the findings of a preliminary inquiry against Jindal Poly Films Ltd.
SEBI's investigation found that the company wrote off investments made in its group companies, resulting in significant losses. SEBI alleges that these investment write-offs resulted in losses of ₹760 crore, and the company failed to timely disclose this information to investors, a clear violation of regulations.
SEBI's further action: The regulator also informed the NCLT that it is in the process of initiating further action against Jindal Poly. Meanwhile, a class action suit filed by minority investors is also pending in the NCLT. Lack of transparency in the write-offs: SEBI's investigation found that Jindal Poly had invested in its group company, Jindal India Powertech, which was subsequently written off. These write-offs were carried out over multiple financial years, concealing significant losses in any single year. According to SEBI, these linked transactions and the lack of transparency surrounding the write-offs concealed material information from shareholders, violating the SEBI Act and Rules. The regulator also said that Jindal Poly's share price does not reflect the company's actual value erosion, making the impact on investors more pronounced.
Share Performance Jindal Poly shares were in choppy trade in Friday's trade and are currently trading at ₹531, up 1.4%. The stock has fallen 5.5% in the past one month.
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