Description

SEBI adjudication order against Vishnu Prakash R Punglia Ltd (VPRPL) for selectively disclosing positive events while failing to report debarment orders, in violation of SEBI LODR Regulations.

Summary

SEBI has passed an Adjudication Order (No. Order/SM/SM/2025-26/32149) against Vishnu Prakash R Punglia Ltd (VPRPL, PAN: AAECV4526D) under Section 15-I of the SEBI Act, 1992. The company was found to have engaged in selective disclosure — reporting positive events such as work orders while concealing material negative events, specifically debarment orders issued against it.

Key Points

  • VPRPL disclosed positive events including a work order from PWD Goa (June 24, 2024) and from UP Jal Nigam (June 25, 2024) across all platforms.
  • The company failed to disclose debarment orders issued against it, which constitute material negative events under SEBI LODR.
  • SEBI initiated adjudication proceedings for violations of Regulation 30(2) read with Part A Para A Sub-Para 20 of Schedule III, Regulation 30(3) read with 30(4)(i)(c) and Part A Para B Sub-Para 8 of Schedule III, and Regulation 4(1)(d) of the SEBI LODR Regulations, 2015.
  • Show Cause Notice No. SEBI/HO/EAD/EAD5/P/OW/2024/8934/1 was issued on March 24, 2025.
  • The adjudication was initially assigned to Shri Amar Navlani (appointed March 04, 2025) and subsequently transferred to a new AO (appointed September 11, 2025).

Regulatory Changes

No new regulatory changes introduced. This order enforces existing SEBI LODR Regulations, specifically the obligation under Regulation 30 to promptly and completely disclose all material events — including adverse events such as debarment orders — to stock exchanges on an equal and non-selective basis.

Compliance Requirements

  • Listed companies must disclose all material events under Regulation 30 of SEBI LODR Regulations without selective omission of negative information.
  • Debarment orders from government or regulatory bodies qualify as material events (Part A Para B Sub-Para 8 of Schedule III) and must be reported promptly.
  • Companies are prohibited from maintaining asymmetric disclosure practices that favour positive news while suppressing adverse developments.
  • Penalty proceedings may be initiated under Section 15A(b) of the SEBI Act for any failure to comply with disclosure obligations.

Important Dates

  • June 24, 2024: VPRPL disclosed work order from PWD Goa.
  • June 25, 2024: VPRPL disclosed work order from UP Jal Nigam.
  • March 04, 2025: Initial Adjudicating Officer appointed.
  • March 24, 2025: Show Cause Notice issued to VPRPL.
  • September 11, 2025: New Adjudicating Officer appointed following transfer of erstwhile AO.
  • February 24, 2026: Final adjudication order issued.

Impact Assessment

This order has moderate market impact, primarily affecting investor confidence in VPRPL’s disclosure practices. The case underscores SEBI’s strict stance on selective or asymmetric disclosure by listed entities. Investors in VPRPL should note that the company had active debarment orders that were not publicly disclosed during mid-2024, which may have materially affected investment decisions at the time. Broader market impact is limited to serving as a regulatory signal to all listed companies to ensure complete and balanced disclosure of material events, both positive and negative.

Impact Justification

Company found guilty of selectively disclosing only positive material events while suppressing material negative events (debarment orders), a serious breach of LODR disclosure norms under Section 15A(b) of SEBI Act.