Description
SEBI order under Sections 11(1), 11(4), 11(4A), 11B(1), 11B(2) read with Section 15HA and 15HB of the SEBI Act, 1992 against Setco Automotive Limited and nine other noticees.
Summary
SEBI has issued an order under Sections 11(1), 11(4), 11(4A), 11B(1), 11B(2) read with Section 15HA and 15HB of the SEBI Act, 1992 in the matter of Setco Automotive Limited. The order involves ten noticees including Setco Automotive Ltd., Setco Auto Systems Pvt. Ltd., and eight individuals: Harish Sheth, Udit Harish Sheth, Arun Arora, Ashok Kumar Jha, Suhasini Somesh Sathe, Rovinder Kumar Singla, Urja Harshal Shah, and Jatinder Bir Singh Gujral. The matter relates to alleged fraudulent and unfair trade practices in the securities market.
Key Points
- SEBI order issued against Setco Automotive Limited and nine other entities/individuals
- Proceedings initiated under multiple sections of SEBI Act including provisions for fraudulent and unfair trade practices
- Ten noticees identified with PAN details provided
- Case involves voluminous records including 40-page show cause notice with 26 annexures and 3 CDs of documents
- SEBI exercising its regulatory powers to prohibit fraudulent and unfair trade practices as per Section 11(2)(e) of SEBI Act
- Order references Supreme Court judgment in Clariant International v. SEBI regarding SEBI’s wide-ranging powers
Regulatory Changes
No new regulatory changes introduced. This is an enforcement action under existing SEBI Act provisions relating to fraudulent and unfair trade practices in securities markets.
Compliance Requirements
- The noticees are subject to SEBI’s enforcement action under Sections 11(1), 11(4), 11(4A), 11B(1), 11B(2), 15HA and 15HB of SEBI Act
- Entities and individuals must comply with SEBI’s findings and directions as detailed in the full order
- Market participants should note this enforcement action as precedent for prohibited conduct
Important Dates
- Order Date: February 5, 2026
- Order Reference: QJA/SS/CFID/CFID-SEC2/32034/2025-26
Impact Assessment
Market Impact: High - Enforcement action against a listed company (Setco Automotive Limited) for alleged fraudulent and unfair trade practices can significantly impact investor confidence and the company’s stock price. The involvement of multiple individuals including company officials suggests systemic compliance issues.
Operational Impact: High - The company and individuals named may face restrictions on securities market activities, potential monetary penalties, and reputational damage. The order under multiple sections of SEBI Act indicates serious violations requiring comprehensive remedial action.
Investor Impact: High - Investors in Setco Automotive Limited should carefully review the full order details to understand the nature of violations and potential implications for their investments. The enforcement action serves as a warning about fraudulent and manipulative practices in the securities market.
Impact Justification
SEBI enforcement order against a listed company and multiple individuals under multiple sections of SEBI Act relating to fraudulent and unfair trade practices, indicating serious regulatory violations with potential significant consequences for the company and individuals involved.