Oceanic Foods Settles Case with Sebi Over Disclosure Lapses by Paying Rs 12.22 Lakh

Oceanic Foods Ltd has resolved a case with the Securities and Exchange Board of India (Sebi) concerning alleged disclosure lapses. The company, listed on the BSE, paid Rs 12.22 lakh as a settlement fee. Oceanic Foods is involved in producing and selling dehydrated spices and vegetables. The settlement was reached without the company admitting or denying any findings.

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The proceedings against Oceanic Foods were initiated by Sebi due to alleged violations of the Listing Obligations and Disclosure Requirements (LODR) regulations. A show cause notice was issued to the company on February 20, 2024. This notice addressed non-disclosure issues related to a National Company Law Tribunal (NCLT) petition filed by its former Managing Director and CEO.

Disclosure Lapses and Settlement

The NCLT petition and the freezing of Oceanic Foods' bank accounts by its former MD & CEO were not disclosed. These events disrupted operations significantly, impacting the company materially. Sebi's action followed these non-disclosures, which were not considered routine business activities.

To address these allegations, Oceanic Foods submitted a settlement application to Sebi. The application aimed to resolve potential proceedings for alleged disclosure rule violations. Following this, revised settlement terms were proposed by the company.

Sebi's Approval and Settlement Fee

Sebi's High Powered Advisory Committee (HPAC) reviewed and approved the proposed settlement terms. The committee recommended settling the matter based on these terms. Consequently, Oceanic Foods paid the settlement fee of Rs 12.22 lakh to conclude the case with Sebi.

With the acceptance of these terms and receipt of payment, Sebi disposed of the adjudication proceedings initiated against Oceanic Foods. This resolution was in accordance with Sebi's settlement regulations, as stated in their order.

This settlement allows Oceanic Foods to move forward without further legal entanglements from this specific case. The company's proactive approach in resolving the issue demonstrates its commitment to compliance with market norms.