Description
SEBI has restrained entity Rahul Dilip Shah from accessing securities market for 6 months in connection with Katalyst Software Services Limited matter.
Summary
SEBI has issued an order restraining Rahul Dilip Shah (PAN: BIZPS1023F) from accessing the securities market for 6 months effective August 29, 2025, in connection with matters related to Katalyst Software Services Limited. The order prohibits Shah from buying, selling or dealing in securities directly or indirectly.
Key Points
- Rahul Dilip Shah banned from securities market for 6 months from August 29, 2025
- Order issued under SEBI Act Sections 11(1), 11(4), 11A and 11B
- Matter involves Katalyst Software Services Limited and 8 noticees including directors
- Complaint filed by Shah himself in August 2023 regarding collusion and pledge invocation issues
- Concerns raised about Karvy Capital Limited’s role in manufactured default events
Regulatory Changes
No new regulatory changes introduced. This is an enforcement action under existing SEBI Act provisions.
Compliance Requirements
- NSE members must take note of the restraint order
- Members should ensure compliance with the market ban on the restrained entity
- Updated list of debarred entities available on NSE website
- Members can contact dl-invsg-all@nse.co.in for queries
Important Dates
- Order Date: August 29, 2025
- Restraint Period: 6 months from August 29, 2025
- Original Complaint Date: August 29, 2023
- Default Event: January 2022 (Karvy declared default on NCDs)
Impact Assessment
The restraint order specifically targets one individual but relates to a broader investigation into Katalyst Software Services Limited involving multiple parties. The case involves allegations of collusion in manufactured defaults and improper pledge invocations, indicating potential systemic issues in corporate governance and debenture management practices.
Impact Justification
SEBI enforcement action with market ban affects trading and compliance requirements