The officials whom Sebi has fined include Malavika Hegde, Whole Time Director (WTD) and CEO and member of the Audit Committee, Independent Director and Interim Chairman SV Ranganath and Independent Director KR Mohan.Sebi’s 47-page order stated that the accused had allegedly failed to comply with several provisions of the Sebi Act and LODR regulations, prompting the regulator to initiate legal proceedings against them.
Sebi had issued a joint Show Cause Notice (SCN) in April 2025 seeking their response as to why they should not be investigated and why no fine should be imposed on them.
The Sebi order held WTD and CEO Hegde in violation, adding that she had failed to discharge the roles relating to financial statements and financial reporting.
The order further stated that the Board of Directors, whose role was to ensure the integrity of its accounting and financial reporting systems while overseeing the disclosure and communications process, had failed to comply with its duties. The regulator also rejected the settlement applications submitted by the suspects, although he gave them an opportunity for a personal hearing.
The Sebi investigation revealed that interest expense amounting to Rs 489.49 crores was not disclosed in the financial statements, and interest expense was not disclosed in the quarterly financial results, from the quarter ended March 31, 2021 (Q4 of FY 2020-21) to the quarter ended September 30, 2024 (Q2 of FY 2024-25).
Shares of Coffee Day Enterprises today ended at Rs 29.44, down by Rs 0.79 or 2.61%.
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