Megastar Foods Settles with Sebi: A Resolution Over Disclosure Norms

Megastar Foods reached a settlement with Sebi over alleged disclosure norm violations by paying Rs 20.15 lakh. The case involved failure to secure shareholder approval for related party transactions. The settlement was completed without admission of fault by the company.

In a notable resolution, Megastar Foods has reached a settlement with the Securities and Exchange Board of India (Sebi) concerning an alleged breach of disclosure norms. The company paid a sum of Rs 20.15 lakh to settle the matter.

The settlement follows charges initiated by Sebi accusing Megastar Foods, a publicly listed entity, of neglecting to obtain prior approval from shareholders for transactions involving related parties. The company secured approval post facto after the transactions were executed.

Megastar Foods revised its settlement terms and made the necessary payment, leading to the case being resolved as per Sebi's adjudicating officer. The company neither admitted nor denied the allegations during the proceedings.

(With inputs from agencies.)