The market regulator conducted an investigation to ascertain possible violations of its provisions. The investigation period covered the financial statements for the FY20 to FY24 and financial results for the FY20 to FY25 till September 30, 2024 implying 22 quarters.
The officials fined by Sebi include Whole Time Director (WTD) & CEO and Audit Committee Member Malavika Hegde, Independent Director and Interim Chairman S V Ranganath and Independent Director K R Mohan.
Sebi’s 47-page order stated that the accused allegedly failed to comply with various provisions of Sebi Act and LODR Regulations, requiring the regulator to initiate adjudication proceedings against them.
Sebi had in April 2025 issued a common Show Cause Notice (SCN) seeking their response as to why an inquiry should not be held against them and why a penalty should not be imposed on them.
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The Sebi order held WTD & CEO Hegde in violation, adding that she failed to discharge the roles relating to financial statements and financial reporting.
The order further stated that the Board of Directors, whose job was to ensure the integrity of its accounting and financial reporting systems while overseeing the disclosure and communication process, failed to discharge their duties.The regulator also rejected settlement applications filed by the accused, though it granted them an opportunity of personal hearing.
The Sebi investigation found that the interest expenses amounting to Rs 489.49 crores were not provided in the annual financial statements, and interest expense was not provided in the quarterly financial results, starting from quarter ending March 31, 2021 (Q4 of FY 2020-21) up to the quarter ending September 30, 2024 (Q2 of FY 2024-25).
Shares of Coffee Day Enterprises ended today at Rs 29.44, down by Rs 0.79 or 2.61%.
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