SECURITIES LAW
SAT Holds Unlisted Company's Allotment To 284 Investors Across Multiple Offers Was Deemed Public Issue
The Securities Appellate Tribunal (SAT) on Friday upheld SEBI's finding that Aakruti Nimriti Limited, an unlisted public company, illegally raised Rs. 29.83 crore from 284 persons in 2007 by structuring multiple share offers to avoid public issue norms under Section 67 of the Companies Act, 1956. However, it modified SEBI's refund directions, restricting repayment only to those investors who wish to exit and reducing the interest rate to 6% per annum. A coram of Presiding Officer Justice P.S....
Delhi High Court Dismisses Plea Against SEBI NOC for NSE IPO, Says Remedy Lies Before SAT
The Delhi High Court has recently dismissed a plea challenging the No Objection Certificate granted by SEBI to the National Stock Exchange in relation to its proposed Initial Public Offering. Justice Jasmeet Singh observed that the petition appeared to have been filed only to stall the IPO. “I am of the view that the present petition seems to have been filed only to interdict the IPO of respondent No. 2,” the Court held. The plea was filed by retail investor K.C. Aggarwal, who stated that he...
SEBI Notifies Broker Registration Process, Circular Effective From 7 Jan 2026 Retrospectively
The Securities and Exchange Board of India (SEBI) on 17 February 2026 issued a circular specifying the application forms and certificate format for registration of stock brokers and clearing members under the SEBI (Stock Brokers) Regulations, 2026. SEBI clarified that while earlier forms were prescribed under the repealed SEBI (Stock Brokers) Regulations, 1992, the new regulations empower the Board or a recognised stock exchange to specify such forms. Accordingly, the application forms and...
SEBI Constitutes Working Group To Review ESG Rating Framework
The Securities and Exchange Board of India on 18 February constituted a working group to review the regulatory framework governing ESG Rating Providers (ERPs), which are agencies that rate companies based on environmental, social and governance standards. The Press Release stated: “The decision has been taken based on feedback received from market participants and stakeholders regarding the existing regulatory framework.” The working group includes representatives from issuers, investors,...
SEBI Slaps ₹1.35 Crore Penalty On Oriental Trimex For Manipulating Financial Statements
On Wednesday 18 February, the Securities and Exchange Board of India imposed monetary penalties totalling Rs.1.35 crores on Oriental Trimex Limited (OTL), its promoters and connected entities for manipulating financial statements and disseminating misleading disclosures to the stock exchange. SEBI's Adjudicating Officer, Amit Kapoor (the AO) held that OTL had misled the investors and induced them to trade in its shares based on misleading financial statements. He wrote: “I note that during...
SAT Reiterates Show Cause Notices Are Not Appealable, Dismisses Brokers' NSE Co-Location Appeals
Reiterating that a show cause notice is not an appealable order, the Securities Appellate Tribunal has held that such notices cannot be construed as “orders” appealable under Section 15T of the SEBI Act. A coram of Presiding Officer Justice P.S. Dinesh Kumar and Technical Members Meera Swarup and Dr. Dheeraj Bhatnagar dismissed a batch of appeals filed by multiple stock brokers challenging show cause notices and related communications issued by the Securities and Exchange Board of India in an...
SAT Rejects Avadhut Sathe Academy Plea To Withdraw ₹2.25 Crore Monthly Till SEBI Probe Ends
The Securities Appellate Tribunal (SAT) has recently refused to allow Avadhut Sathe Trading Academy Private Limited, the trading institute run by financial influencer Avadhut Sathe, to withdraw Rs. 2.25 crore monthly for operational expenses. The withdrawal was sought till the conclusion of SEBI's enquiry. The Tribunal said the company's appeal had already been disposed of an refused to grant any relief. A bench of Presiding Officer Justice P.S. Dinesh Kumar and Technical Member Meera...
SEBI Opens Special Window For Transfer Cum Dematerialisation Of Physical Securities
The Securities and Exchange Board of India has introduced a special window to facilitate transfer cum dematerialisation of physical securities, providing relief to investors who were unable to complete transfers before April 1, 2019 due to procedural or documentation-related challenges. By way of a circular dated January 30, 2026, SEBI said the special window will remain open from February 5, 2026 to February 4, 2027, enabling such investors to regularise and complete transfer cum...
SEBI Mandates 2x Peak Load Capacity For Commodity Derivatives Exchanges, Clearing Corporations
The Securities and Exchange Board of India (SEBI) has recently directed stock exchanges and clearing corporations in the commodity derivatives segment to maintain installed system capacity at least twice their projected peak load. This effectively requires exchanges in the segment to prepare their systems for traffic levels well above expected peak volumes. SEBI noted that Clause 16.1.2 of Chapter 16 of its Master Circular for Commodity Derivatives Segment dated August 4, 2023, requires stock...
Unregistered Investment Advisory: SEBI Orders Divinecommodity.co's Madhav Tiwari To Refund ₹17.48 Lakh
The Securities and Exchange Board of India (SEBI) has recently directed Madhav Tiwari, proprietor of Divinecommodity.co, to refund money to investors after finding that he had carried out investment advisory activities without registration. SEBI had earlier, in September 2024, passed an order against Tiwari for providing investment advisory services without registration. It held that Tiwari had misrepresented himself as a SEBI-registered advisor, collected funds from investors, and...
SEBI Cuts Rs 67-Crore Penalty On GDR Subscriber In Winsome Textile Case To ₹20 Lakh
The Securities and Exchange Board of India (SEBI) has reduced the penalty on Arun Panchariya from Rs 67 crore to Rs 20 lakh in the Winsome Textile Industries GDR case, following a remand by the Securities Appellate TribunalSEBI's Quasi Judicial Authority, Biju S, passed the order after reconsidering the quantum of penalty in light of the findings and directions issued by the SAT. The regulator had, in December 2021, passed an order against Panchariya and 17 others in connection with the GDR...