Description

SEBI has restrained four entities from accessing securities market and prohibited them from buying/selling securities for periods ranging from 1 to 2 years with immediate effect.

Summary

SEBI has issued an order (QJA/SS/CFID/CFID-SEC2/32034/2025-26) dated February 05, 2026, in the matter of Setco Automotive Limited, restraining four entities from accessing the securities market and prohibiting them from buying or selling securities directly or indirectly. The debarment periods range from 1 to 2 years and the order comes into force with immediate effect.

Key Points

  • Four individuals have been debarred from securities market access
  • Mr. Harish Sheth (PAN: AAJPS0670D) - 2 years debarment
  • Mr. Udit Harish Sheth (PAN: ADQPS5292M) - 2 years debarment
  • Ms. Urja Harshal Shah (PAN: AZIPS3369M) - 1 year debarment
  • Mr. Jatinder Bir Singh Gujral (PAN: ADZPG1795L) - 1 year debarment
  • The order covers 10 total noticees including Setco Automotive Ltd., Setco Auto Systems Pvt. Ltd., and other individuals
  • Debarred entities can close existing open derivative positions within 3 months or at contract expiry, whichever is earlier
  • Order effective immediately from February 05, 2026

Regulatory Changes

This is an enforcement action under SEBI Act Sections 11(1), 11(4), 11(4A), 11B(1), 11B(2) read with Sections 15HA and 15HB. The order exercises SEBI’s powers to protect investors and regulate the securities market by restricting access of specific entities found to be in violation.

Compliance Requirements

  • NSE members must take note of the debarred entities and ensure compliance
  • Members should refer to the consolidated list of debarred entities available on NSE website: https://www.nseindia.com/regulations/member-sebi-debarred-entities
  • Trading members must prevent the four debarred individuals from executing any buy/sell transactions directly or indirectly
  • Debarred entities with open derivative positions must close/square off positions within 3 months from order date or at contract expiry, whichever is earlier
  • For queries, members should contact NSE at dl-invsg-all@nse.co.in

Important Dates

  • Order Date: February 05, 2026
  • Effective Date: Immediate effect from February 05, 2026
  • Debarment End Date (2-year): February 05, 2028 (for Mr. Harish Sheth and Mr. Udit Harish Sheth)
  • Debarment End Date (1-year): February 05, 2027 (for Ms. Urja Harshal Shah and Mr. Jatinder Bir Singh Gujral)
  • Derivative Position Closing Deadline: 3 months from order date (May 05, 2026) or contract expiry, whichever is earlier

Impact Assessment

Market Impact: The debarment affects specific individuals and entities related to Setco Automotive Limited. While this is a significant regulatory action, the direct market impact is limited to the named entities and does not affect broader market operations.

Company Impact: Setco Automotive Limited and Setco Auto Systems Pvt. Ltd. are among the noticees, which may affect the company’s reputation and operations. The involvement of multiple individuals with similar surnames suggests potential related party concerns.

Investor Impact: Investors should be aware that certain individuals connected to Setco Automotive Limited have been found in violation of securities regulations. This serves as a cautionary signal for due diligence.

Compliance Impact: Trading members and intermediaries must update their systems to prevent transactions by the debarred entities for the specified periods. The consolidated list maintained by NSE facilitates ongoing compliance monitoring.

Impact Justification

High importance due to SEBI debarment order affecting multiple individuals. Medium impact as it affects specific entities rather than broad market participants, but involves a listed company.