Kerala High Court Issues Notice To SEBI On Plea Alleging Financial Irregularities Against Kitex Group

The Kerala High Court on Saturday issued notice to the Securities and Exchange Board of India (SEBI) on a petition by a Kitex Garments Limited shareholder seeking consideration of his complaint alleging irregularities in the company's financial and related-party transactions.The court also issued notice to Kitex Garments Limited (KGL) and Kitex Childrenswear Limited (KCL), which have been named as respondents in the petition.Justice Bechu Kurian Thomas issued the notice. SEBI's counsel sought...

Delhi High Court Declines Chaubara Eats' Plea Against SEBI Order, Says SAT Remedy Available

The Delhi High Court has declined to examine Chaubara Eats Private Limited's challenge to an interim order passed by the Securities and Exchange Board of India (SEBI), holding that the company can approach the Securities Appellate Tribunal (SAT) against the order.Justice Amit Mahajan was considering a petition filed by Chaubara Eats challenging the order dated September 16, 2026 passed by SEBI, by which various interim directions were issued against the company and other noticees, including the...

“Defies All Logic”: Bombay High Court Directs Stock Exchange To Refund ₹10.58 Lakh For Annulled Share Trade

The Bombay High Court has held that the Stock Exchange, Bombay, could not insist on physical delivery of shares after the underlying trade had been annulled. Justice Aarti Sathe observed that forcing stockbroker Bipin Kantilal Kapadia to take delivery of shares that did not exist after annulment was “an action which defies all logic.”The court accordingly directed the Exchange to refund ₹10.58 lakh to Kapadia, with 9% interest from the date of filing of the suit until payment or realisation. It...

Delhi High Court Dismisses PIL Against IFCI's ₹440.93 Cr NSE Share Sale For Petitioner's Forum Shopping

On 19 August, the Delhi High Court dismissed a Public Interest Litigation (PIL) challenging IFCI Ltd's sale of shares in the National Stock Exchange of India Ltd (NSE), holding that the petitioner had suppressed an earlier proceeding before the Bombay High Court on the same issue. A Division Bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia held that the petitioner's suppression of the earlier proceeding disentitled him to relief and imposed exemplary costs of Rs....

Only SEBI Can Initiate Criminal Complaint For Front-Running Under SEBI Act: Bombay High Court

The Bombay High Court has reiterated that a criminal complaint for an offence under the SEBI Act can be initiated only by the Securities and Exchange Board of India (SEBI). It ruled that a court cannot take cognizance of such an offence on the basis of an FIR lodged by a private complainant. Justice Ranjitsinha Raja Bhonsale held that Section 26 of the SEBI Act bars a court from taking cognizance of an offence punishable under the Act unless the complaint is made by the SEBI Board. ...

Police Can Investigate SCRA Offences But Cannot Take Cognizance Through Report: Gujarat High Court

The Gujarat High Court on 27 July held that while police can investigate cognizable offences under the Securities Contracts (Regulation) Act, 1956 (SCRA), courts cannot take cognizance of such offences on the basis of a police report and must act only on a complaint filed by the competent authority. A Bench of Justice P.M. Raval partly allowed a petition seeking quashing of an FIR alleging illegal “dabba trading” and quashed the proceedings relating to offences under Sections 406 and 420 of the...

'Would Send Wrong Signals': Delhi High Court Denies Bail In ₹30 Crore Investment Fraud Case

The Delhi High Court on Tuesday refused regular bail to Ravinder Singh Sidhu, accused of duping investors of over ₹30 crore through fraudulent investment schemes. The prosecution alleges that Sidhu, who served as Managing Director of a company involved in the schemes, induced investors through false claims that the companies were registered with the Securities and Exchange Board of India (SEBI) and as Non-Banking Financial Companies (NBFCs) with the Reserve Bank of India (RBI).Justice Girish...

Kerala High Court Dismisses SEBI Appeal Over Escrow Funds Linked To Atlas Ramachandran

The Kerala High Court on Thursday dismissed a writ appeal filed by the Securities and Exchange Board of India (SEBI) challenging a single judge's judgment in Axis Bank's writ petition against an Income Tax Department recovery order concerning funds lying in an escrow account maintained by late Atlas Ramachandran (M.M. Ramachandran).A Division Bench of Justice Devan Ramachandran and Justice Basant Balaji held that SEBI, which was not the writ petitioner, could not maintain a collateral challenge...

SEBI Reference Alone Does Not Make Writ Petition Against Stock Broker Maintainable: Delhi High Court

The Delhi High Court on 22 July held that merely marking a representation or complaint to the Securities and Exchange Board of India (SEBI) does not make a writ petition maintainable when the dispute is essentially between an investor and a private stock broker and alternative statutory remedies are available. A Single Bench of Dr. Justice Swarana Kanta Sharma dismissed a petition filed by Sushil Kumar Verma against SEBI and Indiabulls Securities Limited, holding that the petitioner had...

SEBI Special Court Must Hear Accused Before Taking Cognizance Of Complaint Under BNSS: Bombay High Court

The Bombay High Court on 15 July held that a Special Court constituted under the Securities and Exchange Board of India Act, 1992 cannot take cognizance of offences on a complaint filed by the Securities and Exchange Board of India (SEBI) without first providing the accused an opportunity of hearing under the first proviso to Section 223(1) of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), which mandates a pre-cognizance hearing in complaint cases. Justice N.J. Jamadar quashed an order of...

SARFAESI Action Against Personal Guarantors Can Continue Without No Pending IBC Case: Telangana High Court

The Telangana High Court has held that a secured creditor is not barred from proceeding against personal guarantors under the SARFAESI Act merely because insolvency proceedings are pending against the corporate debtor. It observed that where no insolvency proceedings have been initiated against the guarantors before the National Company Law Tribunal (NCLT), there is "no legal argument against a secured creditor proceeding against personal guarantors for realization of its dues" under the...

Auction Purchaser Can Seek Refund If Material Title Defects Were Not Disclosed: Andhra Pradesh High Court

The Andhra Pradesh High Court has directed Indian Bank to refund the entire auction consideration paid by an auction purchaser, along with stamp duty, registration charges, and 9% simple interest, after holding that he could not be compelled to continue with a purchase clouded by title disputes. The court also set aside the sale certificate and the registered sale deed issued in his favour. A Division Bench of Justice Battu Devanand and Justice A. Hari Haranadha Sarma observed that an auction...