Description

SEBI bars KKP Marketing India Limited and its director Mr. Damji Hirjibhai Patel from accessing securities market for 4 years from date of completion of refunds to investors.

Summary

SEBI has issued an order (QJA/SS/WRO/WRO-DIV-3/32000/2025-26) dated January 30, 2026, directing KKP Marketing India Limited (CIN: U52390GJ2010PLC060882) and Mr. Damji Hirjibhai Patel (PAN: AJPPP7412H) to be barred from accessing the securities market for 4 years from the date of completion of refunds to investors. The entities are prohibited from issuing prospectus, offer documents, or advertisements soliciting money from the public, and are restrained from buying, selling, or otherwise dealing in securities market directly or indirectly. The order is effective immediately.

Key Points

  • KKP Marketing India Limited is a public unlisted company incorporated on May 24, 2010, with registered office in Bhuj, Gujarat
  • SEBI order follows complaint dated August 17, 2021 from Mr. Babulal Ratanshi Patel & Others regarding concerns about public issue of equity shares
  • Two entities specifically named in debarment: Noticee No. 1 (KKP Marketing India Limited) and Noticee No. 3 (Mr. Damji Hirjibhai Patel)
  • Total 12 noticees were involved in the matter, including various directors and individuals
  • Consolidated list of debarred entities available on NSE website at https://www.nseindia.com/regulations/member-sebi-debarred-entities

Regulatory Changes

No new regulatory framework changes. This is an enforcement action under existing provisions of Sections 11(1), 11(4), 11(4A), 11A and 11B of the SEBI Act, 1992.

Compliance Requirements

  • NSE members must take note of the SEBI order and ensure compliance
  • KKP Marketing India Limited and Mr. Damji Hirjibhai Patel are prohibited from:
    • Accessing securities market directly or indirectly
    • Issuing prospectus, offer document or advertisement soliciting money from public
    • Buying, selling or otherwise dealing in securities market in any manner
  • Prohibition period: 4 years from date of completion of refunds to investors
  • Members should refer to consolidated list of debarred entities on NSE website before onboarding clients

Important Dates

  • January 30, 2026: Date of SEBI order
  • February 02, 2026: NSE circular date and effective date of order
  • Immediate Effect: Order comes into force immediately
  • Debarment Duration: 4 years from date of completion of refunds to investors (end date to be determined based on refund completion)

Impact Assessment

Market Impact: Low - The order concerns an unlisted public company with no listed securities on NSE. The debarment affects only the named entities and does not impact broader market operations or listed securities trading.

Operational Impact: Medium for compliance - NSE members need to update their debarred entities list and ensure these entities do not access securities market through their platforms. Members must verify client credentials against the consolidated debarred list.

Investor Protection: High importance - The order protects investors from potential fraudulent public issue activities and ensures refunds are completed before any market access is restored.

Precedent Value: The enforcement action reinforces SEBI’s vigilance on public issues by unlisted companies and violations of securities law, serving as a deterrent for similar activities.

Impact Justification

High severity enforcement action but low market impact as it concerns an unlisted company with limited market participation. Important for compliance awareness regarding public issue violations.