On December 30, 2024, Jaiprakash Power Ventures shares slide over 3% to the day low of ₹16.61 at 09: 50 AM. The fall in Jaiprakash Power Ventures shares came after the capital markets regulator Securities and Exchange Board of India (SEBI) imposed a penalty totalling ₹54 lakh. The penalty was levied on Jaiprakash Power Ventures Ltd (JPVL), its Managing Director and CEO Suren Jain, and other top officials for misrepresenting the company’s financial statements.
The following individuals have been penalized by SEBI:
SEBI has directed the individuals and the company to pay the fine within 45 days. The penalty amounts are as follows:
The penalty followed an investigation by SEBI into JPVL to determine whether there were violations of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) and Listing Obligations and Disclosure Requirements (LODR) regulations.
SEBI’s investigation revealed that JPVL had overstated its financial statements by failing to adopt correct accounting practices. Specifically, the company did not measure its investments in Sangam Power Generation Company Ltd (SPGCL), Jaypee Arunachal Power Ltd (JAPL), and Jaypee Meghalaya Power Ltd (JMPL) at fair value during the period FY 2012-13 to FY 2021-22.
As a result of these discrepancies, JPVL’s profit and loss account and balance sheet did not reflect a true and fair view, violating the provisions of both the PFUTP and LODR Regulations.
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Published on: Dec 30, 2024, 9:59 AM IST
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