SECURITIES LAW
SAT Upholds ₹5 Lakh Penalty on Som Distilleries for Misleading Disclosure On ₹100 Crore Fund Raise
The Securities Appellate Tribunal has recently upheld a Rs 5 lakh penalty on Som Distilleries & Breweries Ltd, holding that the company failed to clearly inform investors that it had dropped a proposed Rs 100 crore preferential issue after initially citing “unforeseen circumstances” for cancelling a shareholders' meeting.A bench of Presiding Officer Justice P.S. Dinesh Kumar, Technical Member Meera Swarup and Technical Member Dr. Dheeraj Bhatnagar dismissed the company's appeal against...
SEBI Revises Mutual Fund Scheme Categorisation Norms, Introduces Life Cycle Funds
Today, the Securities and Exchange Board of India (SEBI) revised the regulatory framework for the rationalisation and categorisation of mutual fund schemes. The circular supersedes Clause 2.6 of the Master Circular for Mutual Funds dated 27 June 2024. A key change is the introduction of Life Cycle Funds as a distinct scheme category. These are open-ended, goal-based funds with a pre-determined maturity, following a glide path investment strategy across equity, debt, InvITs, ETCDs, and gold and...
SEBI Disposes Proceedings Against Kalyani Steels, BF Utilities In ₹4.12 Crore Settlement
The Securities and Exchange Board of India has recently passed a settlement order disposing of adjudication proceedings initiated against Kalyani Steels Limited, BF Utilities Limited, and Deepti R Puranik, former Compliance Officer.The proceedings arose from an examination report of National Stock Exchange highlighting suspicious investment patterns within certain Kalyani Group companies. NSE observed that three listed companies of Kalyani group had made investments in promoter group companies...
SEBI Holds VCF Cannot Continue Beyond Tenure, Imposes ₹20 Lakh Penalty On Forum Synergies
The Securities and Exchange Board of India (SEBI) by an order dated February 23, imposed a monetary penalty of Rs. 20 lakhs on Forum Synergies India Trust, its Investment Manager and Trustee in connection with India Knowledge Manufacturing Fund-I, for failure to initiate winding up of the scheme upon expiry of its stipulated tenure, in violation of Regulation 23(1)(a) of the SEBI (Venture Capital Funds) Regulations, 1996. Adjudicating Officer Jai Sebastian, held that a venture capital fund...
Assured Returns: SEBI Suspends Sai Proficient Research's Investment Adviser Registration For One Year
The Securities and Exchange Board of India has suspended the certificate of registration of Sai Proficient Research Investment Advisory, proprietorship of Meeshika Vishwakarma, for one year after finding that it promised assured returns to clients in violation of securities market norms.SEBI's Whole Time Member Amarjeet Singh passed the order in proceedings initiated against Vishwakarma, who is registered with SEBI as an Investment Adviser, pursuant to complaints alleging violations of...
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...