The Securities and Exchange Board of India (SEBI) has dismissed allegations against Piramal Pharma Limited (PPL) over supposed violations of disclosure regulations. This decision, reached on November 8, concludes a complex two-part investigation and clears PPL of accusations tied to incidents that preceded its listing.
The inquiry began after concerns surfaced that Piramal Enterprises Limited (PEL), PPL’s parent entity, failed to disclose critical events affecting its pharmaceutical operations. These included a National Green Tribunal (NGT) fine of ₹8.32 crore for water pollution and a temporary shutdown of its Digwal facility, both of which allegedly went unreported in PEL’s Business Responsibility Reports for the 2018-19 and 2019-20 fiscal years.
Although the case initially centered on PEL, PPL became involved after inheriting PEL’s pharmaceutical assets in a 2020 demerger. SEBI first closed the case, asserting that PPL was not liable for events that occurred before its formation. However, after a review, SEBI’s Whole Time Member (WTM), Amarjit Singh, revisited this stance, arguing that PPL could not bypass accountability for incidents linked to assets it absorbed.
Despite the renewed scrutiny, SEBI ultimately concluded that the undisclosed events lacked material significance under regulatory standards, as they neither affected PPL’s revenue notably nor stirred market reactions when publicly acknowledged in 2023. Accordingly, SEBI ruled that PPL was not obligated to disclose the events initially attributed to PEL, affirming its prior exoneration.
This final judgment signifies a clear close to SEBI’s prolonged examination, reinforcing that PPL holds no disclosure liability for past actions tied to PEL.
