Tata Motors Finance to Settle Case with SEBI by Paying ₹32 Lakh

Tata Motors Finance has resolved a case with the Securities and Exchange Board of India (SEBI) by paying a settlement amount of ₹32 lakh over alleged irregularities in its debt issuances.

Case Background

The matter relates to five tranches of Tier-II perpetual non-convertible debentures issued between 2019 and 2022. Although these debentures were initially placed privately, they were subsequently sold to more than 200 investors within a six-month period. This triggered their classification as deemed public issues.

SEBI observed that the issuances violated provisions of the Companies Act as well as regulations governing debt securities.

How Was the Issue Resolved?

The company chose to settle the proceedings by paying ₹32 lakh, bringing the regulatory matter to a close without admitting or denying the alleged violations.

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Next Steps

The regulator has stated that it will not pursue enforcement action against Tata Motors Finance Ltd for the violations addressed in the settlement.

However, Sebi emphasized that it reserves the right to take appropriate measures in the future if any statements made during the settlement process are found to be false, or if the company fails to comply with the terms of the settlement.

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