The Securities and Exchange Board of India (Sebi), along with the NSE and BSE, has decided to waive fines and penalties previously imposed on Unitech due to non-compliance issues linked to its former management, according to the government-appointed board of the embattled real estate firm.
The leading stock exchanges have also lifted trading restrictions on Unitech securities. Starting October 7, Unitech Ltd’s securities will be transitioned from the restricted Z category to the actively traded B category on the BSE, while the NSE will move the company from the restricted BZ series to the default EQ series.
“Shareholders have long expressed concerns about Unitech shares being classified in the Z category when compared to the B category since the new management took charge,” stated Unitech’s chairman and managing director, Yudhvir Singh Malik. “There have also been concerns regarding the payment of listing fees to the exchanges.”
The government-appointed board of Unitech has been diligent in settling the listing fees with both exchanges.
“We have actively pursued the issue of waiving fines and penalties related to inherited non-compliances, as well as the reclassification of the company’s shares from the Z category to the B category,” Malik, a retired IAS officer, commented.
The fines imposed by BSE and NSE due to these non-compliance issues were Rs 3.3 crore and Rs 3.5 crore, respectively.
In January 2020, the Supreme Court sanctioned the appointment of seven directors to the Unitech board after the government intervened in the ailing company.
Unitech homebuyers have faced delays at various sites due to the company’s struggle to complete projects amid financial challenges and other operational hurdles.
A forensic audit report submitted to the Supreme Court revealed that funds were misappropriated by Unitech promoters, with money collected from homebuyers of the company’s 74 projects being diverted to unrelated businesses.
The new management has restarted work on most of the stalled projects.
