The State Bank of India’s application to SEBI for settling an alleged violation of the code of conduct of debenture trustee regulations has been rejected. In addition, SBI has allegedly violated several clauses of the debenture trustee regulations.
“The rejection of consent application, however, shall not prejudice the pending proceedings in any manner,” it added.
The consent mechanism allows entities to settle cases without admission or denial of guilt by agreeing to adhere to the terms suggested by the entity under the consent mechanism after approval from SEBI’s high powered advisory committee.
Consent applications of 25 entities have been rejected by SEBI for the period July-August, and SEBI will proceed against them under extant regulations.
SEBI has rejected over 200 consent applications ever since it tightened the consent mechanism in May last year.
Major cases where the consent applications were rejected for allegedly indulging in fraudulent and unfair trade practices were PG Electroplast and four others for the PG Electroplast IPO and Todi Securities in the matter of Tijaria Polypipes.
The application of Onelife Capital Advisors and six others were rejected. They allegedly violated SEBI’s Issue of Capital and Disclosure Requirements and indulged in fraudulent and unfair trade practices
The consent application of R.R. Chokhani Stock Brokers was also rejected .They had allegedly violated the SEBI’s Stock Broker regulation in the Bank of Rajasthan case.