JSW Steel recently took responsibility for a penalty imposed on JSW Ispat Special Products Ltd (JISPL) by the Reserve Bank of India (RBI). The penalty, amounting to Rs 2.79 lakh, was paid by JSW Steel on November 28, 2023.
This penalty was specifically levied for a delay in the filing of Form FC-GPR, which falls under Regulation 13.1(2) of the Foreign Exchange Management Act (FEMA) Regulations 2017. The issue was related to the issuance of shares to a person residing outside India. The RBI’s order, dated November 22, 2023, addressed the erstwhile JISPL for this non-compliance.
Furthermore, the context behind this penalty involves the recent amalgamation of JISPL into JSW Steel. This amalgamation was effective from July 31, 2023, following an order from the National Company Law Tribunal on June 22, 2023.
The payment of this penalty by JSW Steel is notable as the company is among the top six steel manufacturing entities in India. This action reflects the company’s commitment to regulatory compliance, especially in the context of its recent expansion through the amalgamation of JISPL