Description

SEBI order under Section 11(1), 11(4), 11(4A), 11B(1), 11B(2) read with Section 15HA and 15HB of the SEBI Act, 1992 in respect of Setco Automotive Limited and 9 other noticees.

Summary

SEBI has issued an order under multiple sections of the SEBI Act, 1992 (Sections 11(1), 11(4), 11(4A), 11B(1), 11B(2) read with Section 15HA and 15HB) in the matter of Setco Automotive Limited. The order involves 10 noticees including the company, a private limited entity (Setco Auto Systems Pvt. Ltd.), and 8 individuals. The order references SEBI’s powers to prohibit fraudulent and unfair trade practices relating to securities markets as mandated under Section 11(2)(e) of the SEBI Act.

Key Points

  • Order issued under reference number QJA/SS/CFID/CFID-SEC2/32034/2025-26
  • 10 noticees involved: Setco Automotive Ltd., Setco Auto Systems Pvt. Ltd., and 8 individuals (Harish Sheth, Udit Harish Sheth, Arun Arora, Ashok Kumar Jha, Suhasini Somesh Sathe, Rovinder Kumar Singla, Urja Harshal Shah, Jatinder Bir Singh Gujral)
  • Order invokes SEBI’s powers under Section 11(2)(e) to prohibit fraudulent and unfair trade practices
  • Case involves voluminous records including a 40-page show cause notice with 26 annexures and 3 CDs of documents
  • Order references Supreme Court judgment in Clariant International v. SEBI regarding SEBI’s wide-ranging legislative, executive and judicial powers
  • The document is 73 pages long (only introductory portion provided)

Regulatory Changes

No new regulatory changes introduced. This is an enforcement order applying existing provisions of the SEBI Act, 1992.

Compliance Requirements

Specific compliance requirements and directions to noticees are not included in the provided excerpt. The full 73-page order would contain detailed findings, directions, penalties, and compliance obligations for the 10 noticees.

Important Dates

  • Order Date: February 5, 2026
  • Other dates and deadlines are not specified in the provided excerpt

Impact Assessment

Market Impact: High - SEBI enforcement orders against listed companies typically affect investor sentiment and stock price performance. Setco Automotive Limited’s stock may experience volatility.

Operational Impact: High - The involvement of 10 entities including the company, a related private entity, and 8 individuals suggests a significant matter that may impact corporate governance and operations.

Legal/Regulatory Impact: High - Multi-section SEBI orders under Sections 11 and 15H series indicate serious allegations relating to fraudulent and unfair trade practices. Potential consequences may include monetary penalties, disgorgement, debarment from securities markets, and other restrictions.

Investor Impact: High - Investors and stakeholders in Setco Automotive Limited should review the full order to understand the nature of violations, penalties imposed, and any restrictions on the company or key management personnel.

Impact Justification

SEBI enforcement order involving 10 noticees including Setco Automotive Limited under multiple sections of SEBI Act relating to fraudulent and unfair trade practices. Such orders typically result in significant regulatory and operational consequences.