Sebi fines Rs 3.5 lakh on Fortis Healthcare

Markets regulator Sebi on Monday imposed a penalty of Rs 3.5 lakh on Fortis Healthcare Holdings for flouting norms with respect to its non-convertible debentures.

The fine has been levied for violating several provisions of LODR (Listing Obligations and Disclosure Requirements) rules, Sebi said in an order.

The regulator noted that Fortis did not provide information on the payment of interest for certain ISINs (International Securities Identification Numbers).

ISIN code, which has 12 characters, is used for uniquely identifying securities like stocks, bonds warrants and commercial papers.

Among others, Sebi said the company did not provide hard copies of annual reports to holders of NCDs (Non-Convertible Debentures) who had requested for the same.

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Further, the company was required to fix a record date for purpose of payment of interest, dividend and payment of redemption as specified under the norms. However, the firm failed to comply with the provision.

Fortis did not take prior approval for any material modification in the structure of NCDs, according to Sebi.

For these violations, the regulator levied a "penalty of Rs 3.5 lakh on the notice i.e. Fortis Healthcare Holdings Private Limited."

The Securities and Exchange Board of India (Sebi) had received references from the Debenture Trustees of NCDs issued by Fortis alleging that the company had not provided any information on the payment of interest for certain ISINs.

Thereafter, the regulator conducted an examination to ascertain the compliance of relevant regulations pertaining to the disclosures/ filings with stock exchanges by Fortis as required under the LODR rules for the financial years 2017-18, 2018-19 and 2019-20 (up to September 30, 2019) with respect to the NCDs issued by the firm.

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