Description

SEBI imposed adjudication proceedings against Capital Finance and Investments LLP for failing to cooperate in investigation of suspected trading activities in Sigma Solve Limited scrip.

Summary

SEBI issued an adjudication order against M/s Capital Finance and Investments LLP (PAN: AANFC7308J) for violating section 11C(5) of the SEBI Act by failing to cooperate in investigation proceedings related to suspected trading activities in Sigma Solve Limited scrip. The entity was identified as part of “Delhi Group entities” and failed to appear before the Investigating Authority despite multiple summons.

Key Points

  • Capital Finance and Investments LLP was identified as a suspected entity in trading activities investigation of Sigma Solve Limited
  • Entity was part of “Delhi Group entities” including Kulbhushan Parashar, Vivek Kumar Bhauka, Preeti Bhauka, Santosh Rani, and Manish Kumar
  • Call Data Records analysis revealed communications between the entity and other suspected parties
  • Entity failed to appear before Investigating Authority despite multiple summons dated October 31, 2024 and December 2024
  • Investigation was conducted to ascertain possible violations of PFUTP Regulations 2003

Regulatory Changes

No new regulatory changes introduced - enforcement of existing non-cooperation provisions under section 11C(5) of SEBI Act.

Compliance Requirements

  • Entities must cooperate with SEBI investigations when summoned
  • Failure to appear before Investigating Authority constitutes violation of SEBI Act
  • Suspected entities in trading investigations must provide statements and information as requested

Important Dates

  • April 04, 2025: Adjudicating Officer appointed
  • May 23, 2025: Show Cause Notice issued
  • October 31, 2024: First summons issued to entity
  • December 2024: Second summons issued

Impact Assessment

This enforcement action reinforces SEBI’s commitment to ensuring cooperation in investigations. While specific to one entity, it sends a clear message about consequences of non-cooperation with regulatory investigations. The case involves suspected fraudulent trading practices which could impact market integrity if not properly investigated and addressed.

Impact Justification

Enforcement action for non-cooperation demonstrates regulatory seriousness but limited to specific entity