SEBI IMPOSED A PENALTY OF ₹18 lakh ON LYPSA GEMS & JEWELLERY LTD FOR NOT ATTACHING A CERTIFICATE FROM PCS THAT NONE OF DIRECTORS ARE DEBARRED OR DISQUALIFIED IN ITS ANNUAL REPORT

 SEBI IMPOSED A PENALTY OF  ₹18 lakh ON LYPSA GEMS & JEWELLERY LTD FOR NOT ATTACHING A CERTIFICATE FROM PCS THAT NONE OF DIRECTORS ARE DEBARRED OR DISQUALIFIED IN ITS ANNUAL REPORT

SEBI VS LYPSA GEMS & JEWELLERY LTD

FACTS OF THE CASE

 SEBI IMPOSED A PENALTY OF  ₹18 lakh ON LYPSA GEMS & JEWELLERY LTD FOR FAILURE TO  attach in the  Annual Report of a listed entity  certificate from a Practicing Company Secretary confirming that none of the directors have been debarred or disqualified from being appointed or continuing as directors attacks penalty.

WHAT IS THE VIOLATION?

Under Regulation 34(3) read with Schedule V, Part C, Clause 10(i) of the SEBI LODR Regulations, the Annual Report of a listed entity is required to contain a certificate from a Practicing Company Secretary confirming that none of the directors have been debarred or disqualified from being appointed or continuing as directors.

LEGAL BASIS

Regulation 34(3) read with Schedule V of SEBI (LODR) Regulations, 2015: Requires disclosure of PCS certificate in Annual Report.

Section 118(11) of Companies Act, 2013: Non-compliance with Secretarial Standards attracts penalties.

IMPLICATIONS FOR LISTED COMPANIES

MANDATORY PCS CERTIFICATE:

Every listed entity must attach the certificate in its Annual Report; omission attracts SEBI adjudication.

DUAL LIABILITY:

 Non-compliance can trigger penalties under both SEBI LODR and Companies Act, 2013.

GOVERNANCE RISK:

Even small lapses (like missing certificates) are treated as systemic weaknesses.

INVESTOR CONFIDENCE:

Repeated disclosure failures damage credibility and ESG scores.

IMPORTANT COMPLAINT CHECK LISTS FOR LISTED COMPANIES

·       Ensure PCS certification on directors’ eligibility is attached annually.

·       Disclose cash flow & consolidated financials without exception.

·       Include auditor’s reports and AOC-1 statements in every filing.

 

# Your Compliance expert R V SECKAR, FCS, LLB 79047 19295,