Description

SEBI adjudication order against Oriental Trimex Limited and 9 related entities for alleged misrepresentation and misstatement in financial statements, violating PFUTP Regulations and LODR Regulations during April 2017 to March 2020.

Summary

SEBI issued Adjudication Order No. Order/AK/GN/2025-26/32129-32138 against Oriental Trimex Limited (OTL) and nine related entities — including promoters, associated companies, and directors — for alleged misrepresentation and misstatement in the company’s financial statements. The investigation covered the period from April 1, 2017 to March 31, 2020. The Adjudicating Officer was appointed on March 20, 2025, under Section 19 of the SEBI Act.

Key Points

  • Ten noticees are named: Oriental Trimex Limited (PAN: AAACO1556G), promoters Rajesh Punia and Savita Punia, director Om Prakash Sharma, associated entities Mirage Marble Private Limited and Nirmal Marble Limited, and individuals Abhishek Jain, Vivek Seth, Jitendra Surendra Gupta, and Rakesh Takyar.
  • Alleged violations include Regulations 3(a), 3(b), 3(c), 3(d), 4(1), 4(2)(f), 4(2)(k), and 4(2)(r) of the PFUTP Regulations read with Section 12A(a), (b), (c) of the SEBI Act.
  • Additional violations alleged under LODR Regulations: Regulations 4(1)(a)-(e), (g)-(j), 4(2)(e), 33(1)(a), 33(1)(c), and Regulation 48.
  • Oriental Trimex Limited (Noticee 1) faces penalties under Section 15HA of the SEBI Act for PFUTP violations.
  • Promoters Rajesh Punia and Savita Punia (Noticees 2 and 3) face penalties under Section 15HB of the SEBI Act.
  • The investigation was initiated to determine whether financial statement misrepresentations constituted fraudulent and unfair trade practices.

Regulatory Changes

No new regulatory changes are introduced. This is an enforcement action applying existing provisions of the SEBI Act, 1992, PFUTP Regulations, 2003, and LODR Regulations, 2015.

Compliance Requirements

  • No new compliance obligations are imposed on the broader market.
  • The ten named noticees are required to participate in adjudication proceedings and respond to the alleged violations.
  • Listed companies are reminded of their obligations under LODR Regulations regarding accurate financial disclosures (Regulations 33 and 48) and governance standards (Regulation 4).

Important Dates

  • Investigation Period: April 1, 2017 to March 31, 2020
  • Adjudicating Officer Appointment: March 20, 2025
  • Order Reference: Order/AK/GN/2025-26/32129-32138

Impact Assessment

The order is specific to Oriental Trimex Limited and its promoter group, with limited direct market-wide impact. However, it reinforces SEBI’s ongoing scrutiny of financial statement integrity among listed companies. Penalties under Sections 15HA and 15HB of the SEBI Act can be substantial, and adverse outcomes may affect the company’s standing and investor confidence. The case underscores SEBI’s enforcement focus on fraudulent financial reporting and the liability of promoters and associated entities in such matters.

Impact Justification

Significant enforcement action for financial statement fraud against a listed company and its promoters/associates, with penalties under Sections 15HA and 15HB of the SEBI Act; impact is company-specific rather than market-wide.