Kalyani Steels Ltd, BF Utilities Settle SEBI Case With ₹4.12 Crore Payment
Three entities, including Kalyani Steels Ltd (KSL), have settled a case with the Securities and Exchange Board of India (SEBI) over alleged violations related to disclosure norms and related-party transactions. The entities collectively paid ₹4.12 crore to resolve the matter without admitting or denying the findings.
The settlement follows proceedings initiated after an examination of financial transactions within the Kalyani Group, led by industrialist Babasaheb Neelkanth Kalyani.
What Triggered the Probe?
The case stems from a report submitted by the National Stock Exchange of India (NSE) in March 2023. The report flagged possible irregularities in investments made by certain group companies.
According to SEBI’s findings, some investments were made in entities with little or no operational activity and negative net worth. In several cases, these investments were impaired within the same year or shortly thereafter. NSE also raised concerns about how funds were utilised by investee companies, citing multi-layered investments into potentially linked entities in India and abroad.
The regulator’s investigation covered financial years from 2009–10 to 2021–22.
Alleged Compliance Lapses
SEBI alleged that Kalyani Steels entered into multiple related-party transactions without securing prior approval from its audit committee or shareholders. Additionally, certain transactions were reportedly not disclosed in quarterly filings submitted to stock exchanges.
Similar disclosure-related lapses were observed in the case of BF Utilities. Meanwhile, Deepti R Puranik, former compliance officer of KSL, was held accountable for oversight failures concerning regulatory compliance.
A show cause notice was issued to the three entities on May 16, 2024.
Settlement Details
Under the approved settlement terms:
- Kalyani Steels Ltd paid ₹2.8 crore
- Deepti R Puranik paid ₹95.55 lakh
- BF Utilities paid ₹36.28 lakh
The payments were made on February 12, 2026, and subsequently confirmed by SEBI.
In its order, SEBI adjudicating officer Jai Sebastian stated that the proceedings initiated in May 2024 stand disposed of following acceptance of the settlement terms.
However, the regulator clarified that it retains the right to reopen the case if the settlement conditions are breached or if any misrepresentation is later discovered.
The resolution brings temporary closure to a long-running regulatory scrutiny, though it underscores the importance of corporate governance and strict compliance with disclosure norms in India’s capital markets.
News Source : Information for this article was gathered from a variety of reliable news outlets.
