Description
Securities Appellate Tribunal stays SEBI debarment order against Man Industries India Limited and its officials, directing deposit of 50% penalty amount.
Summary
The Securities Appellate Tribunal (SAT) has stayed SEBI’s debarment order against Man Industries India Limited and three of its officials (Ramesh Mansukhani, Nikhil Mansukhani, and Ashok Gupta). The original SEBI order dated September 29, 2025 had restrained these entities from accessing securities markets for 2 years. SAT’s order dated October 10, 2025 stays the debarment directions while requiring appellants to deposit 50% of the penalty amount (Rs. 50 lakhs out of Rs. 1 crore total) within two weeks. SEBI has confirmed the stay is operational and not conditional upon the penalty deposit.
Key Points
- SAT has stayed the 2-year securities market debarment order against Man Industries India Limited and three officials
- Original SEBI order (QJA/MN/CFID/CFID/31692/2025-26) dated September 29, 2025 had prohibited buying, selling or dealing in securities
- Total penalty imposed is Rs. 1 crore (Rs. 100 million)
- Appellants must deposit 50% penalty (Rs. 50 lakhs) within two weeks from October 10, 2025
- Penalty deposit to be kept in fixed deposit with lien marked to SEBI
- Stay is unconditional and operational immediately, not dependent on penalty deposit
- Investigation period covered 2014 to 2021; show cause notice issued in 2022
- Next hearing scheduled for January 20, 2026
Regulatory Changes
No new regulatory changes introduced. This circular updates members on SAT’s modification of an existing SEBI enforcement order.
Compliance Requirements
- NSE members must note that the debarment against Man Industries India Limited and the three officials is currently stayed
- These entities can access securities markets during the pendency of the appeal
- Members should refer to the consolidated list of SEBI debarred entities on NSE website: https://www.nseindia.com/regulations/member-sebi-debarred-entities
- Appellants must deposit 50% of penalty (Rs. 50 lakhs) within two weeks from October 10, 2025 (deadline: October 24, 2025)
Important Dates
- September 29, 2025: Original SEBI debarment order issued
- October 10, 2025: SAT order staying debarment
- October 24, 2025: Deadline for appellants to deposit 50% penalty (two weeks from SAT order)
- January 20, 2026: Next hearing date before SAT
- Investigation Period: 2014 to 2021
- Show Cause Notice: Issued in 2022
Impact Assessment
Market Impact: High positive impact for Man Industries India Limited as the stay allows the company and its officials to continue normal securities market operations, including trading and capital raising activities, pending final appeal resolution.
Operational Impact: The stay removes immediate operational restrictions that would have severely impacted the company’s ability to conduct business in securities markets. However, the penalty obligation remains, with 50% payable immediately.
Investor Impact: Provides clarity to investors that Man Industries can continue market operations. The stay demonstrates SAT’s view that appellants should not undergo irreversible debarment while appeal is pending, especially given the long investigation timeline (2014-2021) and procedural delays.
Entities Affected:
- Man Industries (India) Limited (PAN: AAACM2675G)
- Ramesh Mansukhani (PAN: AACPM2146H)
- Nikhil Mansukhani (PAN: AACPM2145E)
- Ashok Gupta (PAN: ACBPG6935F)
Impact Justification
SAT stay order on 2-year market debarment for listed company and key officials provides significant relief, allowing continued market operations pending appeal disposal