Securities and Exchange Board of India Act, 1992

The Supreme Court dismissed appeals by Sahara India Real Estate Corporation Ltd. and Sahara Housing Investment Corporation Ltd. against SEBI's order to refund over Rs. 17,400 crores collected through Optionally Fully Convertible Debentures (OFCDs). The Court held that the OFCDs were public issues, not private placement…

The State of Kerala issued a notification to declare certain lands as revenue forest, which the appellant's predecessor claimed title to. The Forest Settlement Officer rejected the claim, but the Additional District Judge allowed it on appeal under Section 11 of the Kerala Forest Act. The State appealed to the High Cou…

The Supreme Court examined whether Magnum Equity Services Ltd., a corporate entity formed by converting a stock‑broking partnership, was entitled to a fee‑continuity exemption under Paragraph 1(4) of Schedule III of the SEBI (Stock Brokers and Sub‑Brokers) Regulations, 1992, after three of its original partners resigne…

Reliance Commercial Finance Ltd (RCFL) issued non‑convertible debentures and defaulted in March 2019. The RBI issued a prudential framework requiring lenders to enter into an inter‑creditor agreement (ICA) before a resolution plan, and SEBI later issued a circular on 13 Oct 2020 standardising the procedure for debentur…

Ganesh Benzoplast Ltd. (complainant) entered into Inter‑Corporate Deposit agreements with Morgan Securities & Credits Ltd., pledging shares as security. When the value of the pledged shares fell, the lender invoked the pledge and sold the shares to itself and its group companies in 2001. The complainant waited until 20…

The Supreme Court examined the scope of Sections 15‑J and 15‑A to 15‑HA of the Securities and Exchange Board of India Act, 1992 in a series of appeals arising from penalties imposed on Bhavesh Pabari, Shree Radhe and other respondents for violations of SEBI regulations. The principal issue was whether the factors liste…

The Supreme Court examined proceedings initiated by the Forward Markets Commission (later merged with SEBI) against Neptune Overseas Ltd (NOL) and its director Kailash Ramkishan Gupta for alleged trading irregularities. A detailed show‑cause notice dated 21 June 2011 was served only on Gupta, and the respondents argued…

The Securities and Exchange Board of India (SEBI) issued a summons on 23 July 2002 to Roofit Industries Ltd. demanding documents and information. The company failed to comply despite several extensions and a reminder dated 5 September 2002, leading the Adjudicating Officer to impose a penalty of Rs 1 crore under Sectio…

The appellant, a promoter, acquired more than 15% of a listed target company and made a public offer to buy remaining shares at Rs 8.75 per share. He had earlier bought back shares held by a state financial institution (HSIDC) at Rs 23.75 per share using post‑dated cheques, but failed to disclose this transaction in th…

MBL & Co Ltd was found by SEBI’s Whole Time Member (WTM) to have engaged in manipulative self‑trades, placing single‑share buy orders after large sell orders to artificially raise the price of Gujarat NRE Coke Ltd. The WTM barred MBL from trading in its proprietary account for four years under Sections 11, 11(4), 11B a…

The appellant, N. Narayanan, a whole‑time director and promoter of Mis Pyramid Saimira Theatre Ltd., was found to have participated in a scheme that inflated the company’s revenues, profits, security deposits and receivables, thereby creating artificiality in its financial statements. SEBI’s investigation revealed fals…

The Supreme Court examined whether a voluntary open offer made by Akshya Infrastructure Ltd. under Regulation 11 of the SEBI Takeover Regulations could be withdrawn under Regulation 27 when the offer became economically unviable. The Court held that Regulation 27 applies equally to voluntary and triggered public offers…

The Securities and Exchange Board of India (SEBI) restrained Mega Corporation Ltd, a listed radio‑taxi company, from accessing the capital market after observing an unusual surge in its share price and alleged profit manipulation. SEBI issued a show‑cause notice alleging violations of the SEBI (Prohibition of Fraudulen…

The Securities and Exchange Board of India (SEBI) issued a show‑cause notice and later a restraining order under Sections 11, 11(4)(b) and 11‑B of the SEBI Act, 1992, prohibiting Ajay Agarwal from associating with any corporate body and from dealing in securities for five years, based on alleged mis‑statements in a 199…

The Securities and Exchange Board of India (SEBI) appealed against the Securities Appellate Tribunal’s (SAT) order that limited a stock broker’s "annual turnover" to the brokerage earned, thereby reducing the registration fee payable by ICAP India Pvt Ltd, a broker in the wholesale debt market. The Supreme Court examin…

The Supreme Court examined whether a Chief Judicial Magistrate (CJM) in non‑metropolitan areas could entertain a secured creditor's application under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) for taking possession of secured ass…

Prakash Gupta, a director of Ideal Hotels & Industries Ltd, was prosecuted by SEBI for alleged price rigging and insider trading during the company's 1995 IPO. Gupta applied to have the offence under Section 24 of the SEBI Act compounded under Section 24A, but the trial judge and the Delhi High Court rejected the appli…

The Securities and Exchange Board of India (SEBI) appealed against several brokers and sub‑brokers, including Kishore R. Ajmera, for alleged manipulative and fraudulent trading in illiquid securities. The issues centered on whether the brokers could be held liable and penalised under the SEBI Act and its regulations de…

The Supreme Court examined whether a Power Purchase Agreement (PPA) between Karnataka Power Transmission Corporation Ltd (KPTCL) and JSW Energy Ltd (formerly Jindal Thermal Power Co Ltd) was a "concluded contract" under the proviso to Section 27(2) of the Karnataka Electricity Reforms Act, 1999, which would exempt it f…

The Supreme Court considered applications filed by the contemnors, Sahara India Real Estate Corporation Ltd. and Sahara Housing Investment Corp., who were in judicial custody for contempt after failing to comply with SEBI‑directed bail conditions requiring a deposit of Rs 10,000 crore, half in cash and half as a bank g…

The appellants borrowed money from the respondent, securing the loan with seven immovable properties. Their loan account was declared a non‑performing asset and the parties’ contract contained an arbitration clause, leading the respondent to initiate arbitration while also issuing notices under Section 13 of the SARFAE…

The Securities and Exchange Board of India (SEBI) filed criminal complaints against Classic Credit Ltd. and other private parties under the SEBI Act, 1992, which originally required trial before a Metropolitan Magistrate or a Judicial Magistrate of the first class. The SEBI (Amendment) Act, 2002 altered Section 26(2) t…

Rusoday Securities Ltd., a trading member of the National Stock Exchange (NSE), exceeded its gross exposure limits in 1997, leading the NSE to withdraw its trading facilities and later expel it for failing to maintain required capital deposits. The appellant challenged the validity of the NSE's circular prescribing ope…

The Supreme Court examined whether non‑intermediary front‑running—where a person receives confidential information about a forthcoming large block trade and trades ahead of it—constitutes a prohibited fraudulent or unfair trade practice under SEBI’s Prohibition of Fraudulent and Unfair Trade Practices Regulations, 2003…

The appellant, GPSK Capital Pvt. Ltd. (formerly Mantri Finance Ltd.), sought exemption from SEBI registration fees on the ground that it had acquired the Calcutta Stock Exchange membership of individual broker Srikant Mantri and claimed continuity of fee payment under paragraph 4 of Schedule III of the SEBI (Stock Brok…

The Securities and Exchange Board of India (SEBI) appealed against the Securities Appellate Tribunal’s order that exonerated Abhijit Rajan, former Chairman and Managing Director of Gammon Infrastructure Projects Ltd (GIPL), from liability for insider trading. The issue was whether the Board’s decision to terminate two …

The Supreme Court dealt with contempt petitions filed by SEBI against Sahara India Real Estate Corp. Ltd. and its promoters for failing to refund investors the amount collected through illegal Optional Fully Convertible Debentures (OFCDs). The Court noted repeated non‑compliance with its earlier orders directing the de…

The Supreme Court allowed the appeals of Balram Garg and related parties against SEBI’s orders that they had engaged in insider trading. SEBI had alleged that the appellants were "connected persons" or "immediate relatives" of the company’s chairman and MD and had traded on unpublished price‑sensitive information (UPSI…

M/s Informetrics Valuation and Rating Pvt. Ltd. applied to SEBI for registration as a credit rating agency, submitting a chartered accountant's net‑worth certificate based on a bank’s confirmation rather than audited accounts of its promoter. SEBI demanded audited accounts of the promoter for the five years preceding t…

Mahesh Ratilal Shah filed a writ petition alleging that the Bombay Stock Exchange (BSE) had listed the shares of Presto Finance Ltd. despite fraudulent dealings, and that the BSE’s Rules and Bye‑laws, never published in the Gazette, were ultra vires the Securities Contracts (Regulation) Act, 1956. The petition sought d…

The case concerned an appeal by SEBI against an order of the Securities Appellate Tribunal that set aside an ex‑parte interim order passed by SEBI’s Whole Time Member directing the respondent, the CEO and MD of Dynamatic Technologies Ltd, to deposit Rs 3.83 crore in an escrow account. SEBI alleged that the respondent h…

Kosha Investments Ltd, having already held more than 15% of Snowcem India Ltd (SIL), acquired additional shares between June and August 1999 that exceeded the 5% threshold of the paid‑up capital in a financial year, but failed to make the public announcement mandated by SEBI (Substantial Acquisition of Shares & Takeove…

The appellant, former MD and CEO of Ricoh India Ltd., was served a show‑cause notice by SEBI alleging violations of the SEBI Act and the PFUTP Regulations based on an investigation report. The appellant demanded the full investigation report, but SEBI claimed it was an internal document not subject to disclosure. The S…

Gautam Kundu, chairman of Rose Valley, was arrested for alleged money‑laundering offences under the Prevention of Money Laundering Act, 2002 (PMLA) and related violations of the SEBI Act. He sought bail under Section 439 of the Code of Criminal Procedure, but the Calcutta High Court rejected the application, holding th…

The appellants, promoter‑directors of a listed finance company, were found to have purchased shares in violation of SEBI's insider‑trading regulations and were penalised by an SEBI Adjudicating Officer on 28‑08‑2014. The penalty orders required payment within 45 days and were affirmed by the Supreme Court in 2019, afte…

The Supreme Court entertained a writ petition under Article 32 filed by the promoters of the Sai Prasad Group seeking the liquidation of the companies' immovable assets to refund investors. The petitioners alleged that SEBI's efforts to auction the properties were inadequate and that the investors had been waiting for …

The Supreme Court examined whether the directors of Gaurav Agrigenetics Ltd. violated Section 12(1B) of the SEBI Act by operating a collective investment scheme without a registration certificate. It held that Section 12(1B) creates an absolute, mandatory bar for new operators from 25‑Jan‑1995 until they obtain a certi…

The Supreme Court upheld a penalty of Rs 1 crore each on DKG Buildcon Private Ltd. and R.C. Gupta & Co. for willfully failing to comply with multiple SEBI summons issued during an investigation into share‑price manipulation of Shonkh Technology International Ltd. (STIL) and the alleged facilitation of Ketan Parekh’s ma…

Kavi Arora, former MD and CEO of Religare Finvest Ltd., was served a Show Cause Notice by SEBI alleging diversion of funds. He petitioned the High Court seeking the documents relied upon by SEBI and a copy of the opinion formed under Rule 3 of the SEBI Adjudication Rules. SEBI refused to disclose certain documents, cla…

The Supreme Court examined the winding‑up of six open‑ended mutual‑fund schemes of Franklin Templeton, focusing on the interplay between SEBI (Mutual Funds) Regulations, 1996, particularly Reg. 18(15)(c) and Regs. 39‑42. The Court held that when the trustees, by majority, decide to wind up a scheme under Reg. 39(2)(a),…

The Supreme Court examined multiple appeals arising from the Satyam scandal, where the appellant, Chintalapati Srinivasa Raju, a former executive and non‑executive director of Satyam Computer Services Ltd (SCSL) and co‑brother of its chairman, was shown cause for insider trading under SEBI (Prohibition of Insider Tradi…

The appellants were penalised by SEBI for alleged insider‑trading violations involving small share transactions. They contended that the penalty was excessive because the default was merely technical, with no disproportionate gain, loss, or repetitive nature, and argued that Section 15A (as amended in 2002) must be rea…

The Supreme Court examined whether a stock broker must obtain a separate SEBI certificate of registration for each stock exchange where he operates, or whether a single registration suffices, and whether the ad valorem fee prescribed in Schedule III must be paid for each registration. The Court held that the expression…

Laurel Energetics Pvt. Ltd. (appellant) acquired 18% of Rattan India Infrastructure Ltd., the target company, in July 2014 at Rs 6.30 per share. In October 2015 it made an open offer to acquire the remaining shares at Rs 3.20 per share. SEBI held that the acquisition was not exempt under Regulation 10 of the SEBI Subst…

Videocon International Ltd. appealed against SEBI's order that some of its second appeals to the High Court were not maintainable after the amendment of Section 15Z of the SEBI Act. The amendment, effective 29‑Oct‑2002, shifted the second appellate forum from the High Court to the Supreme Court and limited the scope to…

The State of Tamil Nadu amended its Distillery Rules to raise the administrative service fee for industrial alcohol from Rs.0.50 to Rs.1 per bulk litre. The petitioners (industrial distilleries) challenged the increase, arguing that the fee must be based on a quid pro quo relationship between the State's expenses and t…

PGF Limited, which sold and developed agricultural land and ran joint‑venture schemes, was directed by SEBI to cease collecting money and to refund investors, on the ground that its activities constituted a collective investment scheme (CIS) under Section 11AA of the SEBI Act. PGF challenged the SEBI order and the cons…

The Supreme Court examined whether the term “consent of the unitholders” in Regulation 18(15)(c) of the SEBI (Mutual Funds) Regulations, 1996 requires the approval of a majority of all unitholders or merely a majority of those who actually voted in the poll. The Court held that consent means the affirmative vote of a s…

The Supreme Court examined two appeals filed by SEBI against Sunil Krishna Khaitan and others and Madhuri S. Pitti, challenging SEBI's show‑cause notices and directions under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. The Court clarified that the term “acquirer” in Regulation 10 inclu…

The Securities and Exchange Board of India (SEBI) appealed against the Securities Appellate Tribunal’s (SAT) order that set aside penalties imposed on M/s Opee Stock‑Link Ltd. and others for illegal off‑market trading of IPO shares. The shares of Jet Airways India Ltd. and Infrastructure Development Finance Co. were ov…

The case concerned the sale of a mortgaged property by a bank under the SARFAESI Act. The Supreme Court examined whether the bank, as a secured creditor, had complied with Section 13(8) of the Act and Rules 8 and 9, which require a 30‑day individual notice and a public notice before any sale. It held that the sale effe…

Premium Global Securities Pvt. Ltd. (PGSL) transferred its National Stock Exchange (NSE) trading membership from its predecessor, Premium Capital Market & Investments Ltd. (PCMIL), after SEBI’s Rule 8(1)(f) and 8(3)(f) of the Securities Contract (Regulation) Rules, 1957 barred a company from carrying fund‑based and tra…

The Supreme Court examined petitions seeking to shift investigation of the multi‑state chit‑fund (Ponzi) scam, which defrauded lakhs of depositors of roughly Rs 10,000 crore, from the State Police to the Central Bureau of Investigation (CBI). The scam involved companies operating across West Bengal, Tripura, Assam and …

Nirma Industries Ltd. and its associate sought to withdraw a public open offer made under SEBI's Takeover Code after discovering alleged fraud and a sharp fall in the target company's share price. SEBI rejected the withdrawal request, and the Securities Appellate Tribunal (SAT) upheld the rejection. The appellants argu…

Daiichi Sankyo acquired a controlling stake in Ranbaxy, which had earlier bought shares of Zenotech at Rs.160 per share. When Daiichi made a public offer to acquire Zenotech shares, it offered Rs.113.62 per share, citing the market price as the highest of the methods prescribed under Regulation 20(4)(c). The respondent…

The Securities and Exchange Board of India (SEBI) issued a notice to Deccan Chronicle Holdings Ltd (DCHL) and its Company Secretary, V. Shankar, imposing a Rs 10 lakh penalty for alleged violations in a Rs 270 crore share buy‑back. The SEBI Whole Time Member held the Company Secretary liable for not exercising due dili…

The Securities and Exchange Board of India (SEBI) issued show‑cause notices to Rakhi Trading and other traders for executing synchronized buy‑sell and reverse transactions in Nifty options that consistently yielded profit for one party and loss for the other without any material change in the underlying index. The Adju…

The appellants Pramod Jain and others made a hostile public offer to acquire 25% of Golden Tobacco Ltd. and later sought to withdraw the offer, alleging that SEBI’s undue delay in approving their draft letter of offer allowed the target company to siphon assets and erode its net worth, defeating the offer’s purpose. SE…

The Securities and Exchange Board of India (SEBI) issued show‑cause notices to Vital Communications Ltd (VCL) and related entities for misleading advertisements, leading to a series of orders: a 2008 restraint order, a 2014 order imposing market bans, and a 2018 disgorgement order. The Securities Appellate Tribunal set…

The Securities and Exchange Board of India (SEBI) issued an administrative circular under Section 11(1) of the SEBI Act to curb dematerialisation charges. National Securities Depository Ltd. (NSDL) challenged the circular, arguing that it could not be appealed before the Securities Appellate Tribunal (SAT) under Sectio…

The Securities and Exchange Board of India (SEBI) debarred Panasia Advisors Ltd. and its managing director for ten years, alleging that as lead managers they facilitated a fraudulent scheme involving Global Depository Receipts (GDRs) of six Indian companies, creating a false appearance of foreign investment and harming…

The Supreme Court dismissed a writ petition filed by Subrata Roy Sahara challenging an order dated 4.3.2014 directing his arrest and detention for non-compliance of earlier orders to refund money collected through Optionally Fully Convertible Debentures (OFCDs). The Court held that the two Sahara companies flouted orde…

The Securities and Exchange Board of India (SEBI) filed a criminal complaint against Reliance Industries Ltd (RIL) alleging violation of Section 77 of the Companies Act, 1956 for alleged fraudulent allotment of shares. SEBI’s investigation report of 2005 was inconclusive, prompting SEBI to obtain two opinions from reti…

OPG Securities Private Ltd, a stock broker, challenged SEBI's demand for registration fees calculated on the basis of its total turnover for periods after 1 October 2006. The demand was based on the earlier Schedule III of the SEBI (Stock‑brokers and Sub‑brokers) Regulations, which used the previous year's turnover on …

The Supreme Court examined the eligibility of ArcelorMittal India Private Ltd (AMIPL) and Numetal Ltd to submit resolution plans for Essar Steel India Ltd (ESIL) under the Insolvency and Bankruptcy Code (IBC) after the introduction of Section 29A. The Court held that disqualification under sub‑clause (c) of Section 29A…

The petitioners, Dushyant N. Dalal and his wife, were ordered by SEBI to disgorge unlawful gains of Rs.4.05 crore and pay a penalty of Rs.6 crore, with a debarment of seven years if unpaid. They challenged the SEBI order, arguing that interest could not be levied retrospectively under Section 28A of the SEBI Act and th…

The Securities and Exchange Board of India (SEBI) found that Sahara India Real Estate Corporation Ltd. and its affiliates had illegally raised public deposits through Optional Fully Convertible Debentures (OFCDs) and ordered them to refund the amount with interest. The companies failed to comply with the Court's and SE…

IFB Agro Industries, a listed company, alleged that SICGIL India Ltd. and related persons acquired more than 5% of its shares from the open market without making the disclosures required under SEBI's Substantial Acquisition of Shares and Takeover (SAST) Regulations and Insider Trading (PIT) Regulations. The appellant f…

The case concerned stock brokers who had converted their individual or partnership membership into a corporate entity before 1 April 1997 and sought the fee‑continuity benefit under paragraph 4 of Schedule III of the SEBI (Stock Brokers and Sub‑Brokers) Regulations, 1992. SEBI denied the benefit, arguing that the provi…

The Securities and Exchange Board of India (SEBI) appealed against the Securities Appellate Tribunal’s order directing SEBI to refund fees paid by M/s Prebon Yamane (India) Ltd (the Respondent). The dispute centered on whether the Respondent qualified for the "fee continuity" exemption under Clause 4 of Schedule III of…

The Supreme Court heard a batch of writ petitions filed by Vishal Tiwari and others seeking redress for massive losses suffered by investors after the share price of the Adani Group collapsed following a Hindenburg Research report. The petitions alleged that the Adani companies had manipulated share prices, failed to d…

The petitioner challenged the appointment of U.K. Sinha as Chairman of SEBI on grounds that he failed to satisfy the statutory requirement of "high integrity" under Section 4(5) of the SEBI Act, alleging mis‑representation, irregular deputation, false declarations, and a conspiracy to secure his selection. The Court ex…