The Securities and Exchange Board of India (SEBI) passed a settlement order in the National Peroxide Limited case on Tuesday, February 11.
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Earlier, SEBI had initiated an investigation against National Peroxide for violations of Clause 5 of Para A of Part II of Master Circular on Scheme of Arrangement in August 2024.
Under these rules, all listed companies have to ensure that steps for listing of specified securities are completed and trading in securities commences within 60 days of receipt of the order of a high court/NCLT, simultaneously on all the stock exchanges where the equity shares of the listed entity (or transfer entity) are/were listed.
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The listing and trading of National Peroxide shares began on July 4, 2024, which was 406 days after it had received the National Company Law Tribunal order on May 25, 2023 — way beyond the 60-day limit.
SEBI had issued a show-cause notice to National Peroxide in September 2024, questioning why there should be no enquiry against it and why there should be no penalty for violating the rules.
Following the adjudication proceedings, the company filed a settlement application in November 2024.
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After revisions and reviews of the arguments made by the company, a high-powered advisory committee (HPAC) meeting in December 2024 concluded that the case may be settled for an amount of ₹9,42,500. On February 5, 2025, SEBI’s whole-time members’ panel approved the HPAC’s recommendations, after which National Peroxide paid the settlement amount.
