SEBI was justified in imposing penalty on cos. for violation of non-disclosure of encumbrances: SAT

COMPANY LAW/SEBI : Where company YCIPL and MCPL being promoters of YBL, raised money through Non-Convertible Debentures (NCDs) with a condition to maintain cover ratio or borrowing cap at all times; since such condition restricted ability of YCIPL, being an 'encumbrance' and MCPL to dispose shares of YBL held by them, such restriction was required to be disclose to stock exchange and YBL and on failure to disclose same by YCIPL and MCPL, imposition of penalty was justified

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