UPL Ltd has settled with capital markets regulator the Securities and Exchange Board of India (Sebi) over its failure to amend the terms of its subsidiary’s auditor appointment. The company sued it after paying a settlement of Rs 1.95 lakh. “The immediate adjudication process initiated for September 3, 2021, SCN (Show Cause Notice) Notice (UPL) has been dealt with,” Sebi said in the settlement order passed on Friday.

In its notice of reasons to UPL, it claimed the company failed to obtain amendments to the appointment of its principal subsidiary UPL Mauritius auditor KPMG Mauritius; the company failed to obtain limited scrutiny following the resignation of its auditor.

UPL allegedly violated the LODR (Listing Obligation and Disclosure Requirement) regulations and listing agreement through such conduct. While the adjudication process is pending, the company recommends its immediate action be resolved by a settlement order that “does not admit or deny the findings of fact and conclusions of law” and file a settlement application with Sebi.