Lloyds Enterprises Limited has settled proceedings with the Securities and Exchange Board of India by paying ₹1.28 crore over alleged violations of securities market regulations.
Its Managing Director Rajesh Rajnarayan Gupta and Chief Financial Officer Viresh Shankar Sohoni also settled the proceedings. They paid ₹1.44 crore each, taking the total settlement amount to ₹4.16 crore.
The settlement order was passed by Whole Time Member Sandip Pradhan and Whole Time Member K.V.R. Murthy.
The matter followed an alert received by SEBI from BSE Limited on November 21, 2023. The alert concerned irregularities in advances reported by Lloyds Enterprises, following which SEBI conducted an investigation.
SEBI's investigation found that Lloyds Enterprises had not recognised expected credit losses on advances of ₹144.82 crore outstanding from Cheerful Trade & Realty Developers Private Limited (CTRDPL) and Triumph Trade & Properties Developers Private Limited (TTPDPL) during FY 2016-17 to FY 2020-21. The company thereby overstated the advances in its financial statements, according to the order.
The order records that the funds had originally been transferred to CTRDPL and TTPDPL in FY 2006-07. They were lent at nil interest and without any agreement for the benefit of the promoters or their related entities. The order states that the funds were misutilised from FY 2006-07 to FY 2022-23.
SEBI also found that CTRDPL and TTPDPL were related parties of Lloyds Enterprises. The company, however, did not disclose them as related parties in its annual reports from FY 2016-17 to FY 2022-23.
Gupta was the Managing Director and Sohoni was the Chief Financial Officer during the relevant period.
The applicants filed suo motu settlement applications under the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018. They sought to settle the proceedings without admitting or denying the findings of facts or conclusions of law.
SEBI's Internal Committee held meetings with their authorised representatives on January 22 and March 2, 2026. The applicants later filed revised settlement terms, which were placed before the High-Powered Advisory Committee. The committee considered the terms on May 27 and recommended settlement.
The Panel of Whole Time Members approved the recommendations on July 15, 2026. The applicants subsequently remitted the settlement amounts, which SEBI confirmed receiving.
The settlement covers alleged violations of provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.
The settlement was made on a neither-admit-nor-deny basis. SEBI ordered that it would not initiate enforcement action against the applicants for the specified violations.
SEBI retained the right to take appropriate action if any representation made by the applicants during the settlement proceedings was subsequently found to be untrue. It can also act if they breach any clause or condition of the undertakings or waivers filed during the proceedings or fail to pay any difference due to a discrepancy while arriving at the settlement terms.