Samvardhana Motherson International Limited has disclosed a compounding order from the Reserve Bank of India (RBI) for a contravention under the Foreign Exchange Management Act, 1999. The company paid a compounding fee of ₹35,93,334 for the non-submission and delayed registration of bonus shares. This action relates to bonus shares allotted on September 10, 2007, to non-resident shareholders. The company states there is no material impact on its financials or operations.
RBI Compounding Order Details
Samvardhana Motherson International Limited has officially submitted details regarding a compounding order received from the Reserve Bank of India (RBI), Foreign Exchange Department. The order mandates the payment of a compounding fee amounting to ₹35,93,334. This penalty was levied upon the company’s suo-motto compounding application.
Nature of Contravention
The contravention pertains to the non-submission and delayed registration of bonus shares that were allotted on September 10, 2007, to non-resident and foreign shareholders. These actions were undertaken in accordance with the applicable provisions of the Foreign Exchange Management Act, 1999, and its associated rules and regulations.
Impact Assessment
Samvardhana Motherson International Limited has stated that this compounding order and the subsequent payment of the fee will have no material impact on the company’s financial performance, its overall operations, or other key activities of the listed entity.
Source: BSE
