Description
SEBI confirms restrictions on Pacheli Industrial Finance Limited and modifies restraints on six other entities to apply only to specific scrips.
Summary
SEBI has issued a confirmatory order dated December 30, 2025 (Order No. WTM/KV/CFID/CFID-TPD/31942/2025-26) in the matter of Pacheli Industrial Finance Limited (PIFL), confirming its interim order dated January 16, 2025. The order confirms the complete market access ban on PIFL and modifies the restraints on six other entities (Noticee nos. 2 to 7) to restrict them only from buying, selling or dealing in securities of PIFL and three specific listed entities: Sunshine Capital Ltd., Abhijit Trading Company Ltd., and Alstone Textiles (India) Ltd.
Key Points
- SEBI confirmatory order confirms directions issued against Pacheli Industrial Finance Limited in the interim order dated January 16, 2025
- Pacheli Industrial Finance Limited (PIFL) remains restrained from buying, selling or dealing in securities or accessing capital market either directly or indirectly
- Six entities (Abhijit Trading Company Ltd, Calyx Securities Pvt. Ltd, Hibiscus Holdings Pvt. Ltd, Avail Financial Services Ltd, Edoptica Retail India Ltd, Sulphur Securities Pvt. Ltd) have modified restraints
- Modified restraints for entities 2-7 now apply only to scrips of: PIFL, Sunshine Capital Ltd., Abhijit Trading Company Ltd., and Alstone Textiles (India) Ltd.
- Investigation initiated due to apparent inconsistency between share price movement and reported financials of PIFL
- PIFL is engaged in providing consultancy services related to hotels, lodging houses and other multiple services
- Entities 2-7 identified as preferential allottees
- Three entities were identified as conduits through which funds were routed
Regulatory Changes
The confirmatory order modifies the scope of restrictions originally imposed on six entities (Noticee nos. 2 to 7). Instead of a blanket ban on all securities market activities, these entities are now specifically restricted only from trading in the scrips of:
- Pacheli Industrial Finance Limited (PIFL)
- Sunshine Capital Ltd.
- Abhijit Trading Company Ltd.
- Alstone Textiles (India) Ltd.
The complete market access ban on PIFL (Noticee no. 1) remains unchanged and confirmed.
Compliance Requirements
- NSE members must take note of the SEBI confirmatory order and ensure compliance
- Members must not facilitate any buying, selling or dealing in securities by PIFL either directly or indirectly
- Members must not facilitate trading by entities 2-7 in the four specified scrips (PIFL, Sunshine Capital Ltd., Abhijit Trading Company Ltd., Alstone Textiles India Ltd.)
- Members can refer to the consolidated list of debarred entities available on NSE website at: https://www.nseindia.com/regulations/member-sebi-debarred-entities
- For queries, members should email: dl-invsg-all@nse.co.in
Important Dates
- January 16, 2025: SEBI issued interim order (Order No. WTM/AB/CFID/CFID-TPD/31115/2024-25) and NSE circular no. NSE/INVG/66171
- December 30, 2025: SEBI issued confirmatory order (Order No. WTM/KV/CFID/CFID-TPD/31942/2025-26)
- December 30, 2025: NSE circular issued (Circular Ref. No: 539/2025)
- Ongoing: Restrictions remain in effect until further orders from SEBI
Impact Assessment
Market Impact:
- Trading in securities of PIFL completely prohibited, affecting liquidity and investor access
- Trading restrictions on three additional listed entities (Sunshine Capital Ltd., Abhijit Trading Company Ltd., Alstone Textiles India Ltd.) for six specific entities
- Investor confidence may be impacted in companies where fund routing irregularities are suspected
Operational Impact:
- Brokers and members must implement systems to block trades by restricted entities
- Enhanced monitoring required for transactions in the four affected scrips
- Market intermediaries need to verify clients against the debarred entities list
Regulatory Significance:
- Demonstrates SEBI’s continued vigilance on price manipulation and financial irregularities
- Highlights regulatory focus on preferential allotment schemes and fund routing mechanisms
- Confirms SEBI’s approach of proportionate restrictions based on entity involvement level
Entity-Specific Impact:
- PIFL faces complete capital market ban affecting all corporate actions and fund raising
- Six preferential allottees have limited trading restrictions but can operate normally in other securities
- Fund routing through interconnected entities subject to regulatory scrutiny
Impact Justification
SEBI confirmatory order imposing severe trading restrictions on multiple entities, confirming complete market access ban on one company and modified restraints on six others affecting specific scrips