Description

SEBI order under Sections 11(1), 11(4), 11B(1) and 11B(2) following SAT remand directions in the matter of Timbor Home Limited against Paresh Nathalal Chauhan.

Summary

SEBI issued an order under Sections 11(1), 11(4), 11B(1) and 11B(2) of the SEBI Act, 1992 against Paresh Nathalal Chauhan (PAN: AAPPC4494H) in the matter of Timbor Home Limited. This order follows remand directions from the Securities Appellate Tribunal (SAT) dated July 17, 2025 in Appeal Nos. 483 and 484 of 2024. The SAT remanded the original SEBI order dated November 20, 2020 and adjudication order dated March 23, 2021 on the limited ground that Show Cause Notices were not properly served upon the noticee, denying him the right to defend himself.

Key Points

  • SAT set aside previous SEBI orders only in respect of Paresh Nathalal Chauhan due to improper service of Show Cause Notices dated September 21, 2018 and December 05, 2018
  • The SAT upheld factual findings and conclusions on merits regarding the alleged scheme and modus operandi in connected Appeal No. 259/2022
  • Show Cause Notices were served to the noticee’s authorized representative who collected them on August 26, 2025
  • The proceeding relates to activities in the scrip of Timbor Home Limited
  • SEBI is disposing the SCNs afresh in compliance with SAT directions and principles of natural justice

Regulatory Changes

No new regulatory changes introduced. This is an enforcement order following judicial remand directions.

Compliance Requirements

  • The noticee was directed to appear before SEBI on August 20, 2025 as per SAT order
  • Authorized representative collected Show Cause Notices and annexures (including 2 CDs) on August 26, 2025
  • Notice was served via email dated August 26, 2025 with request for acknowledgment

Important Dates

  • Original SEBI 11B Order: November 20, 2020
  • Original Adjudication Order: March 23, 2021
  • SAT Remand Order: July 17, 2025 (Appeal Nos. 483 & 484 of 2024)
  • Appearance Direction: August 20, 2025
  • SCN Service: August 26, 2025
  • Current Order: December 31, 2025

Impact Assessment

This order impacts Paresh Nathalal Chauhan individually in connection with alleged violations in Timbor Home Limited scrip. The SAT’s remand was limited to procedural grounds of natural justice violation, while the substantive findings regarding the market manipulation scheme were upheld in connected appeals. The fresh proceedings ensure compliance with principles of natural justice while maintaining the integrity of SEBI’s enforcement framework. The case demonstrates the importance of proper service of notices in regulatory proceedings and the appellate process available to noticees.

Impact Justification

Enforcement proceeding against individual following SAT remand on procedural grounds. Limited to specific noticee but upholds original factual findings on market manipulation scheme.