Description
SEBI enforcement order against Decipher Labs Ltd. and associated persons for securities market violations during 2021-2022.
Summary
SEBI has issued an enforcement order against Decipher Labs Ltd. and four associated persons (Janakiram Ajjarapu, Sushant Mohan Lal, Kumar Raghavan, and the company itself) for violations of securities regulations during November 12, 2021 to January 11, 2022. The investigation found potential violations of PFUTP Regulations, PIT Regulations, and LODR Regulations.
Key Points
- Investigation period: November 12, 2021 to January 11, 2022
- Company listed on BSE since 1995, originally in pharmaceuticals, later diversified to IT
- Janakiram Ajjarapu acquired the company in 2017 through open offer
- Company name changed from Combat Drugs Ltd. to Decipher Labs Ltd. in 2020
- Promoter shareholding decreased from 45.94% to 39.01% during Sept-Dec 2021
- Public shareholders increased from 12,795 to 39,274 in same period
Regulatory Changes
Enforcement action under multiple SEBI regulations including Sections 11(1), 11(4), 11(4A), 11B(1) and 11B(2) read with Section 15HA and 15HB of SEBI Act, 1992.
Compliance Requirements
Specific compliance requirements and penalties will be detailed in the complete order. All listed entities must ensure adherence to PFUTP, PIT, and LODR regulations.
Important Dates
- Investigation Period: November 12, 2021 to January 11, 2022
- Order Date: August 1, 2025
- Key shareholding changes: September 30, 2021 to December 31, 2021
Impact Assessment
High impact enforcement action that may result in trading restrictions, penalties, or other regulatory measures against Decipher Labs Ltd. and associated persons. Investors should monitor for further developments and potential impact on stock trading.
Impact Justification
SEBI enforcement order indicates serious violations with potential trading restrictions and penalties