Description

SEBI partially unfreezes accounts of four noticees following SAT order, allowing trading in all securities except IEX Limited shares.

Summary

SEBI has issued directions following a Securities Appellate Tribunal (SAT) order dated December 17, 2025, regarding accounts frozen under SEBI order WTM/KV/ISD/ISD-SEC-2/31727/2025-26 dated October 15, 2025. Four noticees - Narendra Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar - have had their accounts unfrozen subject to deposit of Rs. 15 Crore and filing of affidavit. However, these entities remain prohibited from trading in India Energy Exchange Limited (IEX) securities while being allowed to trade in all other securities.

Key Points

  • SAT order partially stays SEBI’s freezing directions for 4 out of 8 noticees
  • Account unfreeze conditional on Rs. 15 Crore deposit and affidavit filing
  • Four noticees can now trade in all securities except IEX Limited shares
  • Four other noticees (Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, and Anita) remain under complete trading ban
  • Members must ensure compliance with updated restrictions

Regulatory Changes

Partial modification of SEBI order WTM/KV/ISD/ISD-SEC-2/31727/2025-26 dated October 15, 2025 based on SAT directions:

Accounts to be unfrozen (with IEX-specific restrictions):

  1. Narendra Kumar (PAN: AOPPK9841L)
  2. Virender Singh (PAN: FAZPS5201P)
  3. Bindu Sharma (PAN: EEOPS4198F)
  4. Sanjeev Kumar (PAN: BJMPS6988P)

Accounts remaining frozen:

  1. Bhoovan Singh (PAN: BTWPS4875D)
  2. Amar Jit Singh Soran (PAN: AAMPS1208C)
  3. Amita Soran (PAN: AESPS0968P)
  4. Anita (PAN: BXJPA5277J)

Compliance Requirements

  • NSE members must unfreeze accounts of the four specified noticees
  • Members must implement trading restrictions specifically for IEX Limited scrip for these four entities
  • Members must allow unrestricted trading in all other securities for these four noticees
  • Members should refer to the consolidated list of debarred entities available at: https://www.nseindia.com/regulations/member-sebi-debarred-entities
  • For queries, members should contact: dl-invsg-all@nse.co.in

Important Dates

  • October 15, 2025: Original SEBI order freezing accounts issued
  • December 17, 2025: SAT order granting partial stay
  • February 06, 2026: NSE circular communicating SEBI’s directions for account unfreeze
  • Immediate: Compliance required with updated restrictions

Impact Assessment

Market Impact: Low - Affects only specific entities and one scrip (IEX Limited)

Operational Impact: Medium for affected entities - Four noticees regain partial trading access, allowing them to participate in the broader market while remaining restricted from IEX securities. This provides liquidity relief while maintaining regulatory oversight on the specific matter under investigation.

Regulatory Significance: Medium - Demonstrates interplay between SEBI enforcement actions and appellate relief, showing that regulatory freezes can be partially lifted through judicial intervention while preserving restrictions related to the core alleged violations.

Member Action Required: NSE members must promptly update their systems to reflect the dual-tier restriction (unfrozen for general trading, blocked only for IEX scrip) for the four specified PANs.

Impact Justification

Affects specific entities with partial account unfreeze; trading restrictions remain only for IEX scrip, limiting broader market impact