TCNS Clothing on Friday said that it has received show cause notice by SEBI under Rule 4(1) of SEBI (Procedure for holding of Enquiry and Imposing Penalty Rules), 1995. The notice alleges violation of Regulation 26(6) of SEBI (Listing Obligation and disclosure requirements), 2015, it said in a regulatory filing.
It further stated that there is no operational impact on the company. “Financial impact may be to the extent of any monetary penalty, if any, imposed by the Regulator/Adjudicating Officer,” it said.
TCNS Clothing is a women’s apparel company. Apart from clothing, it also sells other products such as footwear, jewellery, and beauty products under its brands, W, Aurelia, Wishful, Elleven and Folk Song. The company’s list of businesses also involves wholesale cash and carry trading (including sale through franchisee outlets) of products.
Earlier in June, the Competition Commission of India (CCI) had approved the acquisition of TCNS Clothing by Aditya Birla Fashion and Retail Limited (ABFRL). According to a release by the CCI, the proposed combination involves acquisition of 51 per cent of the expanded share capital of the target by the acquirer TCNS Clothing Co. Limited (target) by the Aditya Birla Fashion and Retail Limited (acquirer).
ABFRL is a listed company and is part of Aditya Birla group of companies and is engaged in retailing of branded products in segments including apparel, footwear and accessories, through its retail stores, online retail platforms and e-commerce marketplaces.