Sebi levies Rs 2 lakh penalty on Emami Realty for loan timing violations

The Securities and Exchange Board of India imposed a Rs 2 lakh fine on Emami Realty. Regulator officials issued an order under Section 15HB of the SEBI Act for regulatory breaches involving a related-party transaction. Investigation records show Emami Realty granted an additional Rs 25 lakh loan to entity Lohitka on August 8, 2016. The company's audit committee approved this same deal only on August 11, 2016. Sebi determined the loan lacked prior audit committee authorization as required by Regulation 23(2) of the LODR Regulations. The market regulator rejected Emami Realty's claim that this was a continuation of a previously authorized arrangement from 2015. Furthermore, regulators noted the firm failed to utilize Regulation 23(3), which governs repetitive related-party transactions. The company also argued the Rs 25 lakh sum was negligible, but Sebi dismissed this based on applicable monetary thresholds in the Regulations at that time.