Description

SEBI adjudication order against Ashapura Minechem Limited for violation of disclosure requirements under LODR Regulations related to non-disclosure of fines and orders by Government of Gujarat.

Summary

SEBI issued Adjudication Order No. Order/SM/KS/2025-26/32025 against Ashapura Minechem Limited (PAN: AAACA0957F) for violation of Regulation 30(2) and 30(4)(i)(a) of LODR Regulations. The company failed to disclose multiple orders issued by the Government of Gujarat through Ministry of Geology & Mineral Accounts, as well as FIRs and court cases filed against the company and its directors. The adjudication proceedings were initiated under Section 15-I of the SEBI Act, 1992.

Key Points

  • Adjudication proceedings initiated against Ashapura Minechem Limited for non-disclosure of material events
  • Violations relate to Regulation 30(2) of LODR Regulations read with Sub-para 6 and 20 of Para A of Part A of Schedule III
  • Company failed to disclose orders issued by Government of Gujarat Ministry of Geology & Mineral Accounts since 2018
  • Multiple FIRs and court cases against the company and directors were not disclosed to the exchange
  • Fines were levied for the period 2018 to 2020 but not disclosed
  • Post SEBI LODR second amendment in July 2023, disclosure of fines became mandatory under Sub-para 20
  • Show Cause Notice dated October 17, 2025 issued to the company
  • Adjudicating Officer appointed on September 11, 2025

Regulatory Changes

The order references the SEBI LODR second amendment effective July 2023, which made disclosure of fines by authorities mandatory under:

  • Sub-para 20 of Para A of Part A of Schedule III of LODR Regulations
  • SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023
  • Required disclosure within 24 hours of occurrence of the event

Prior to July 2023, disclosure of fines by authorities was not mandatorily required for the period F.Y. 2018 to June 2019.

Compliance Requirements

  • Listed companies must disclose all orders issued by government authorities and regulatory bodies
  • Mandatory disclosure of fines levied by authorities within 24 hours under current LODR framework
  • FIRs and court cases filed against the company and directors must be disclosed as material events
  • Compliance with Regulation 30(2) and 30(4)(i)(a) of LODR Regulations is mandatory
  • Disclosure requirements apply to events that may have material impact on the company

Important Dates

  • 2018-2020: Period during which fines were levied by Government of Gujarat
  • July 13, 2023: SEBI Circular making disclosure of fines mandatory (effective date)
  • September 11, 2025: Adjudicating Officer appointed
  • October 17, 2025: Show Cause Notice issued to Ashapura Minechem Limited

Impact Assessment

Company-Specific Impact:

  • Ashapura Minechem Limited faces penalty proceedings under Section 15A(b) of SEBI Act, 1992
  • Regulatory action may impact company’s reputation and investor confidence
  • Sets precedent for enforcement of post-July 2023 disclosure requirements

Market-Wide Impact:

  • Reinforces importance of timely disclosure of material events including government orders and fines
  • Listed companies must ensure robust compliance mechanisms for disclosure obligations
  • Demonstrates SEBI’s strict enforcement approach to LODR disclosure violations
  • Clarifies that non-disclosure of government orders, FIRs, and legal proceedings can attract adjudication proceedings and penalties

Impact Justification

Adjudication order for disclosure violations by a listed company. Sets precedent for mandatory disclosure of fines and government orders under LODR Regulations post-July 2023 amendments.