SEBI fines Muthoottu Mini Financiers for misleading advertisements

By: |
February 26, 2020 6:47 PM

The company had placed advertisements on its website for public issue of secured, redeemable, NCDs aggregating to Rs 100 crore claiming that the RBI and Sebi have rated its NCD issue as "stable".

SEBI,

Markets regulator Sebi on Wednesday imposed a penalty of Rs 10 lakh on Muthoottu Mini Financiers Ltd, a non-banking financial company, for placing misleading advertisements on its website regarding issuance of non-convertible debentures (NCDs).

The company had placed advertisements on its website for public issue of secured, redeemable, NCDs aggregating to Rs 100 crore claiming that the RBI and Sebi have rated its NCD issue as “stable”. “Using the names of the regulators tends to impart a sense of security amongst the investors and thus may lead them to believe that the issue has been rated by the regulators and that, by issuing gives a misleading impression to the public at large,” Sebi noted.

By issuing misleading advertisements, the company has contravened provisions of Issue and Listing of Debt Securities Regulations and accordingly monetary penalty has been levied on Muthoottu Mini Financiers.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Gold Price Today, 23 Sep 2021: Gold prices tumble, support seen at 46100; check where will prices go now
2Global markets: Asian shares gain but Evergrande jitters keep investors on edge
3Vodafone Idea, ZEEL, Dhanlaxmi Bank, Bharti Airtel, Infosys, Bank of India stocks in focus