Market watchdog SEBI sent a showcause notice to PC Jeweller on Tuesday. The development was confirmed by the company in a regulatory filing. According to the exchange filing, the showcause notice is in connection with the non-compliance of LODR regulations and NPA plan. The showcause notice was sent under Rule 4(1) of the SEBI Rules, 1995, the company said the regulatory filing.
“The aforesaid SCN also provides a settlement mechanism under the SEBI (Settlement Proceedings) Regulations, 2018 and the Company believes that all the aforesaid alleged non-compliances are covered under the same. It is at the same time availing legal advice with respect to the SCN and would take appropriate action in this matter in the due course of time,” PC Jeweller said in the exchange filing.
PC Jeweller recorded its fifth consecutive quarterly loss last month, attributing the decline in revenue to ongoing legal disputes with its lenders. In response, the company has put forward a proposal for a one-time settlement of its outstanding debt with lenders, who have tentatively agreed to internally review the proposal for approval.
PC Jeweller has already made an initial deposit towards this settlement and is optimistic about a favorable resolution. The company has been facing liquidity challenges, exacerbated by the closure of several showrooms, amidst prolonged negotiations with lenders that began last year.
