The market regulator conducted an investigation to ascertain possible violations of its provisions. The investigation period covered financial statements from FY20 to FY24 and financial results from FY20 to FY25 to September 30, 2024, covering 22 quarters.
The officials fined by Sebi include whole time director (WTD) and CEO and audit committee member Malvika Hegde, independent director and interim chairman SV Ranganath and independent director KR Mohan.
Sebi’s 47-page order stated that the accused had allegedly failed to comply with various provisions of the SEBI Act and LODR Regulations, which required the regulator to initiate adjudication proceedings against them.
Sebi had issued a Common Show Cause Notice (SCN) in April 2025 seeking their response as to why they should not be investigated and fined.
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Sebi’s order found WTD and CEO Hegde in violation, adding that it had failed to perform roles related to financial statements and financial reporting.
The order further stated that the board of directors, whose job it was to ensure the integrity of its accounting and financial reporting systems while overseeing the disclosure and communication process, had failed to discharge its duties.
The regulator also rejected the settlement pleas filed by the accused, though it gave them an opportunity for personal hearing.
A SEBI investigation has revealed that in the annual financial statements Rs. 489.49 crore was not provided and interest expense was not provided in the quarterly financial results for the quarter beginning March 31, 2021 (Q4 of FY 2020-21) to September 23 (Q4 of FY 2020-21). 2024-25).
Share of Coffee Day Enterprises today Rs. 0.79 or 2.61% down to Rs. It closed at 29.44.
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