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The five events that get listed companies in trouble

Reg 30 late disclosure. Reg 23 unapproved RPT. PIT UPSI breach. SDD failure. Reg 24A secretarial audit gap. This lesson walks the five enforcement archetypes with named cases from the 2024-2026 SEBI docket and closes the free-preview module.

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Legal basis
SEBI LODR + PIT primary-source stack current to 30 August 2026. Core: SEBI (LODR) Regulations 2015 consolidated 22 January 2026 (sebi.gov.in), SEBI (PIT) Regulations 2015 consolidated 12 March 2025 (sebi.gov.in). LODR amendments in the operating window: 2nd Amendment 2023 (14 June 2023 gazette, effective 14 July 2023, Reg 30 recast + Sch III Part A materiality); Amendment 2024 (17 May 2024, MPM-based rumour verification); 2nd Amendment 2024 (10 July 2024); 3rd Amendment 2024 (12 December 2024, Reg 24A + Reg 27 + Integrated Filing, operative 1 April 2025 / 31 December 2024); Amendment 2025 (27 March 2025, Chapter VA HVDLE + SME Reg 23); 2nd Amendment 2025 (29 April 2025, securitised debt); 3rd Amendment 2025 (mid-2025, gazette date to be re-verified); 4th Amendment 2025 (27 October 2025); 5th Amendment 2025 (18-19 November 2025, Reg 23 recast + Sch XII slab materiality, effective 18 December 2025); 6th Amendment 2025 (15-16 December 2025, terminology fix); Amendment 2026 (22 January 2026, HVDLE Rs 5,000 crore + LoC removal). PIT amendments in the operating window: Amendment 2018 (31 December 2018, SDD introduction, effective 1 April 2019); Amendment 2020 (17 July 2020, SDD internal + annual audit committee verification); Amendment 2024 (17 May 2024, Reg 2(1)(e) media clarification); 2nd Amendment 2024 (25 June 2024, Reg 5 trading plan overhaul, effective 23 September 2024); 3rd Amendment 2024 (4 December 2024, connected-person expansion + relative definition); Amendment 2025 (11 March 2025, UPSI 16-item + external-UPSI 2-day SDD + trading window carve-out, effective 10 June 2025). SEBI Master Circular on LODR dated 30 January 2026 (supersedes 11 November 2024 version). SEBI Circular on trading window closure automation dated 21 April 2025 (SEBI/HO/ISD/ISD-PoD-2/P/CIR/2025/55; top 500 from 1 July 2025, all listed from 1 October 2025). SEBI Industry Standards Note on Reg 30 dated 25 February 2025. SEBI ISF RPT Industry Standards dated 26 June 2025. SEBI BRSR Core Circular dated 12 July 2023 and Recalibration Circular dated 28 March 2025 (Data-and-Assessment-or-Assurance). SEBI Board Meetings 207th (30 September 2024, connected person), 208th (18 December 2024, UPSI alignment), 209th (24 March 2025, FPI + MII), 211th (12 September 2025, RPT revamp under Tuhin Kanta Pandey as Chairperson since 1 March 2025). Case law: Balram Garg v SEBI (SC 19 April 2022, 2022 SCC OnLine SC 496), FCRPL v SEBI (SAT February 2024), Kunal Ashok Kashyap v SEBI (SAT 20 January 2025), Linde India Ltd v SEBI (SAT 5 December 2025). SEBI Orders (case studies): RHFL / Anil Ambani (22 August 2024), Linde India / Praxair (24 July 2024), Paytm warning (2024), Zee Entertainment (January 2025), IndusInd Bank (28 May 2025), HDFC merger HUF (July 2025), Adani clean chit (18 September 2025), Nucleus Software (September 2025), Swan Corp (September 2025), IEX interim (15 October 2025), NDTV (May 2026), Reliance Industries administrative warning (24 June 2026), Adicorp Enterprises (September 2025). Related statutes: Companies Act 2013 Sec 149, 188, 204 for interaction with LODR Reg 17, Reg 23, Reg 24A; SEBI Act 1992 Sec 15G (Rs 25 crore or 3x profits penalty cap, unchanged since 2014); SEBI PFUTP Regulations 2003 Reg 4(2)(q) (front-running); SEBI (Mutual Funds) Regulations 1996 Reg 5A (PIT-lite for AMC scheme units, operative 1 April 2023). Institutional: ICSI Secretarial Standards SS-1 and SS-2 revised 1 April 2024 (approved under Sec 118(10) CA 2013); ICSI Compendium on PIT dated 27 June 2025; ICSI SDD Advisory dated 28 February 2024; NSE SDD SOP circular dated 18 October 2024 (quarterly SDD certificate); BSE FAQs on Reg 33 dated 17 November 2025; SCORES 2.0 launched 1 April 2024 (21-day resolution timeline); IiAS Voting Guidelines 2024-25 revised 31 July 2024. Items requiring ongoing verification and flagged inside the relevant lessons: LODR Third Amendment 2025 gazette date, LODR Fifth Amendment 2025 gazette (18 vs 19 November 2025), LODR Amendment 2026 gazette (20 vs 22 January 2026), HVDLE transition rules for entities dropping out after January 2026, SME LODR CG applicability beyond Reg 23, BRSR Core assessment-or-assurance provider ecosystem, 23 March 2026 SEBI Board Meeting decisions (not confirmed via WebFetch), any PIT amendment notified 12 March 2025 to 30 August 2026, SDD 8-year retention start point, SDD "quarterly" (exchange) vs "annual" (Reg) audit committee review distinction, SDD vendor list (InsiderQ, InsiderSDD, NOVUS Velox, Orion, Lexcomply, Ricago; NOT Sprinto or Rubix), contra-trade cross-PAN informal guidance, and SEBI adjudication order PDF verification for each named case study.

SEBI's Enforcement page is public. Every adjudication order, every interim order, every settlement order lives at sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes. If you read the 2024-2026 docket carefully you notice a pattern. Five archetypes account for the majority of listed-entity enforcement action. This lesson walks each one with a named case from the SEBI docket, so you see what SEBI enforcement actually looks like before you build your compliance function to prevent it.

Archetype 1: Reg 30 late disclosure

The most common LODR breach. Your board meeting closes at 4.42 pm. You file the outcome at 5.13 pm. The Reg 30(6)(i) 30-minute clock has expired 1 minute earlier. Or your CFO's team delayed the fine-and-penalty disclosure by 3 days because they were negotiating with the sectoral regulator on the amount. Or your rumour verification response to a Reg 30(11) query from BSE took 32 hours instead of 24.

Case study: NDTV, SEBI Order May 2026 [L5-C1]. Adjudication order dated May 2026 in the NDTV matter. Reg 30 disclosure lapses concerning promoter loan agreements that affected management or control. Penalty imposed for delayed disclosure of a material event. The order PDF is at sebi.gov.in/sebi_data/attachdocs/may-2026/ORDER_1780046247.pdf; verify the penalty amount there before quoting it in a client memo.

Case study: Zee Entertainment, SEBI Order January 2025 [L5-C2]. Adjudication order dated January 2025 imposed Rs 30 lakh penalty on ZEEL, Rs 58 lakh on Punit Goenka and Rs 60 lakh on Subhash Chandra for LODR + PFUTP violations. Not just Reg 30; the order combined LODR and PFUTP heads. Zee's Independent Investigation Committee report October 2024 cleared "no material irregularities" but SEBI proceedings continued with fresh show-cause notices after settlement rejection.

Median settlement amount for Reg 30 lapses: Rs 5 lakh to Rs 15 lakh at adjudication, settled at approximately 50-70 percent of that under the Settlement Scheme. Note this is a qualitative read of the enforcement docket; SEBI does not publish a median-penalty table.

How to build for it: Set up an internal materiality committee under the 25 February 2025 SEBI Industry Standards Note SOP. Cover 4.42 pm scenarios with a pre-drafted announcement template for every likely board decision. Test your BSE Listing Centre and NSE Digital Portal accounts weekly. Have a fallback filing procedure documented.

Archetype 2: Reg 23 unapproved RPT

An RPT that skipped audit committee approval, or was approved outside the omnibus, or exceeded the Schedule XII materiality without shareholder approval. Historically less common than Reg 30 breaches but with much higher penalties because the RPT typically involves large sums and, if diverted to promoter conduit entities, triggers PFUTP fraud heads alongside Reg 23.

Case study: Reliance Home Finance Ltd (RHFL) / Anil Ambani, SEBI Order 22 August 2024 [L5-C3]. Landmark RPT enforcement. Rs 25 crore individual penalty on Anil Ambani. Rs 655 crore aggregate across 27 entities. 5-year debarment from securities market. Fraudulent scheme to divert RHFL funds via loans to promoter-linked conduit entities during FY19. Template for how SEBI examines promoter-linked fund diversion under Reg 23 combined with PFUTP.

Case study: DHFL / Kapil and Dheeraj Wadhawan. 5-year ban + Rs 120 crore aggregate. Fund diversion pattern similar to RHFL. Order on sebi.gov.in.

Case study: Linde India Ltd v SEBI, SAT 5 December 2025 [L5-C4]. SAT upheld SEBI July 2024 whole-time member order requiring Linde to test RPT materiality on aggregate financial-year basis, not transaction-by-transaction. Set precedent under old Reg 23(1) that is preserved under the new Sch XII framework.

How to build for it: Reg 23(2) audit committee prior approval for every RPT (no de minimis). Backup papers per ISF Industry Standards notified 26 June 2025. Sch XII materiality calculator run once a year for the threshold reset. Omnibus approvals renewed annually. Related-party master maintained in ERP with quarterly reconciliation. Read Linde India for the aggregation doctrine.

Archetype 3: PIT UPSI breach

An insider trades in listed securities while in possession of UPSI. Or communicates UPSI to a non-connected person outside a legitimate purpose. Detected typically by SEBI's Integrated Market Surveillance System correlating price movement with trading patterns from designated persons and their relatives.

Case study: IEX (Indian Energy Exchange), SEBI Interim Order 15 October 2025 [L5-C5]. SEBI barred 8 individuals and impounded Rs 173.14 crore. Put-option positions in IEX during 21-28 July 2025 preceded the CERC market-coupling order of 23 July 2025 which caused a 29.6 percent price fall on 24 July 2025. Largest recent PIT interim by quantum.

Case study: IndusInd Bank, SEBI Interim Order 28 May 2025 [L5-C6]. Restrained former MD and CEO Sumant Kathpalia, former Deputy CEO Arun Khurana and 3 other senior executives. Impounded approximately Rs 19.7 crore. Executives sold IndusInd shares between 4 December 2023 and 10 March 2025 while allegedly aware of Rs 1,529 crore derivative-portfolio accounting discrepancy.

Case study: HDFC / HDFC Bank merger, SEBI Adjudication July 2025 [L5-C7]. Rs 10 lakh penalty on a HUF for HDFC and HDFC Bank F&O trades on 1 April 2022 preceding merger announcement of 4 April 2022. Model case study on pre-announcement trading in a mega-merger.

How to build for it: Complete SDD with all UPSI entries within 2 calendar days for external UPSI. Automated trading window closure via depository PAN freeze from 1 October 2025. Pre-clearance workflow with typical Rs 10 lakh or Rs 25 lakh caps. Contra-trade monitoring with 6-month cooling. Read Balram Garg v SEBI on burden of proof and Kunal Kashyap v SEBI on connected-person breadth.

Archetype 4: SDD failure

SEBI has been increasingly focused on SDD failures as first-order evidence in insider trading investigations. Reg 3(5) mandates the SDD, Reg 3(6) mandates 8-year retention. If a SEBI investigation finds the SDD absent, outsourced, tampered or missing entries around a material event, the entity's PIT Code compliance is treated as broken.

How SDD failures typically surface: SEBI reads SDD extracts as the first line of evidence in a PIT investigation. If the UPSI decision was taken at a 3 pm board meeting on Tuesday and the SDD was updated at 9 am on Wednesday, the 18-hour gap is a Reg 3(5) failure. If the recipient list omits the CFO's assistant who typed the memo, that omission is a Reg 3(5) failure. If external UPSI (a customer default notice received by email on Thursday) is entered on Monday (4 calendar days), that is a violation of the 2-calendar-day rule from 10 June 2025.

How to build for it: On-premises SDD software (InsiderQ from Naapbooks Ltd BSE-listed; InsiderSDD Ahmedabad; NOVUS Velox from Infomatics; Orion Legal Supplies; Lexcomply; Ricago NSDL affiliate). Do not put SDD on shared cloud infrastructure. Tamper-evident audit trail. PAN or other identifier for every recipient. Quarterly SDD compliance certificate to NSE / BSE from Compliance Officer or PCS (October 2024 NSE SDD SOP circular). Annual audit committee verification under Sch B Cl 4A (2020 amendment).

What SDD is not. A quarterly obligation at the audit-committee level. That is a common confusion. The Sch B Cl 4A audit-committee verification is annual, not quarterly. The quarterly SDD compliance certificate is an exchange-level administrative requirement. Do not conflate. Also, Sprinto and Rubix do not operate in the Indian SDD space; they are SOC 2 / ISO 27001 GRC platforms. Do not use them as SDD vendors.

Archetype 5: Reg 24A secretarial audit gap

Since Reg 24A operative 1 April 2025 requires a Peer-Reviewed Practising Company Secretary as Secretarial Auditor with 5-year tenure caps, entities that engaged a non-Peer-Reviewed PCS or overshot the tenure cap face compliance gaps at the annual XBRL ASCR filing. The Annual Secretarial Compliance Report is filed within 60 days of FY end (by 30 May) and any observations of non-compliance from the Peer-Reviewed PCS become public.

Case study: Reliance Industries administrative warning 24 June 2026 [L5-C8]. Not a secretarial audit case directly, but a warning to the compliance officer and company secretary for inadequate PIT DP monitoring. Illustrates SEBI's escalation pattern: first-tier administrative warning before monetary penalty. If your Reg 24A observations in the ASCR flag material non-compliance, expect a similar first-tier warning that escalates on repeat.

How to build for it: Engage a Peer-Reviewed PCS holding a valid ICSI peer-review certificate. Structure the engagement letter per Reg 24A(1A) / (1B) tenure caps. Maintain a compliance evidence pack quarter by quarter so the PCS can complete the ASCR by 30 May without a last-minute scramble. Apply ICSI Secretarial Standards SS-1 (Board Meetings) and SS-2 (General Meetings) revised effective 1 April 2024 to every board and shareholder meeting.

End of the free-preview module

You now know what SEBI LODR is, what SEBI PIT is, which chapters bind which entities, the amendment sprint that rewrote the operating framework, the quarterly compliance calendar and the five events that get most listed companies into SEBI trouble.

The rest of the course goes deep into the mechanics. Module 2 walks board composition, committees and independent directors including the January 2026 HVDLE threshold hike and the SME crossover. Module 3 walks Reg 30 material events and rumour verification with the Feb 2025 Industry Standards Note SOP. Module 4 walks Reg 23 RPT after the Fifth Amendment 2025 Sch XII slab-based materiality. Module 5 walks PIT foundations. Module 6 walks SDD, trading window and code of conduct. Module 7 walks Reg 24A, Reg 27, Reg 33 and BRSR. Module 8 closes with enforcement pattern reading, the Settlement Scheme, Section 15G math and the operator's playbook with 12 embedded templates. Enrol to continue.

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Citations
SEBI Order, NDTV May 2026 (Reg 30 promoter loan disclosure) L5-C1
SEBI Adjudication Order dated May 2026 in NDTV matter. Reg 30 disclosure lapses concerning promoter loan agreements. Reference case study on delayed disclosure of promoter-level events with impact on control.
SEBI Order, Zee Entertainment Jan 2025 (Rs 30 lakh + Rs 58 lakh + Rs 60 lakh) L5-C2
SEBI Adjudication Order dated January 2025 in Zee Entertainment Enterprises Ltd matter. Rs 30 lakh penalty on ZEEL, Rs 58 lakh on Punit Goenka, Rs 60 lakh on Subhash Chandra for LODR + PFUTP violations. Fresh show-cause notices issued after settlement rejection. Zee IIC report October 2024 cleared "no material irregularities" but SEBI proceedings continue.
SEBI Order, RHFL Anil Ambani 22 Aug 2024 (Rs 25 cr + 5-year ban) L5-C3
SEBI Order dated 22 August 2024 in Reliance Home Finance Ltd matter. Rs 25 crore individual penalty on Anil Ambani, Rs 655 crore aggregate across 27 entities, 5-year debarment from securities market. Fraudulent scheme to divert RHFL funds via loans to promoter-linked conduit entities during FY19. Landmark RPT-driven enforcement case; template for how SEBI examines promoter-linked fund diversion under Reg 23 + PFUTP.
SAT Order, Linde India v SEBI SAT 5 Dec 2025 (RPT aggregation doctrine) L5-C4
Linde India Ltd v SEBI, SAT 5 December 2025. SAT upheld SEBI July 2024 whole-time-member order requiring Linde to test RPT materiality on aggregate basis across the financial year, not transaction-by-transaction. Set precedent under old Reg 23(1) that is preserved under the new Sch XII framework. Materiality is tested by cumulating all transactions with a related party across a financial year.
SEBI Order, IEX interim order 15 Oct 2025 (Rs 173 cr impound PIT) L5-C5
SEBI Interim Order dated 15 October 2025 in Indian Energy Exchange matter. Barred 8 individuals (Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma, Sanjeev Kumar). Impounded Rs 173.14 crore. Put-option positions in IEX during 21-28 July 2025 preceded CERC market-coupling order of 23 July 2025 which caused 29.6 percent price fall on 24 July 2025. Largest recent PIT interim by quantum.
SEBI Order, IndusInd Bank interim 28 May 2025 (Rs 19.7 cr impound derivatives) L5-C6
SEBI Interim Order dated 28 May 2025 in IndusInd Bank matter. Restrained former MD and CEO Sumant Kathpalia, former Deputy CEO Arun Khurana, head of treasury Sushant Sourav, head of GMG operations Rohan Jathanna and CAO Anil Marco Rao from the securities market. Impounded approximately Rs 19.7 crore of notional gains. Executives sold IndusInd shares between 4 December 2023 and 10 March 2025 while allegedly aware of Rs 1,529 crore derivative-portfolio accounting discrepancy.
SEBI Order, HDFC merger HUF Jul 2025 (Rs 10 lakh PIT penalty) L5-C7
SEBI Adjudication Order dated July 2025 in HDFC / HDFC Bank merger matter. Rs 10 lakh penalty on an individual (HUF trades in HDFC and HDFC Bank F&O on 1 April 2022 preceding merger announcement of 4 April 2022). Held to be trading while in possession of UPSI. Model case study on pre-announcement trading in a mega-merger.
SEBI Order, Reliance Industries 24 Jun 2026 (Administrative warning DP monitoring) L5-C8
SEBI Administrative Warning dated 24 June 2026 in Reliance Industries matter. No monetary penalty. Compliance officer and company secretary of RIL received administrative warning after SEBI found employee trading in RIL shares in July 2024 while in possession of UPSI, involving 2 employees plus immediate relative of a connected person. Observation that RIL monitoring of designated person compliance was inadequate. First-tier SEBI response before monetary escalation.
Free preview
Reading Module 1. Enrol to unlock the rest of the course.
Module 1: The listed-company operator's world
Module 2: Board composition, committees, independent directors
  • Reg 15 applicability, SME crossover and HVDLE
  • Reg 17 board composition and the chairperson-MD story
  • Regs 18-22 committees
  • Reg 25 Independent Directors and D&O
  • Reg 24 material subsidiary and the 10 / 20 test
Module 3: Reg 30 material events and rumour verification
  • Reg 30 recast after the Second Amendment 2023
  • Schedule III Part A materiality: the 2 / 2 / 5 test
  • Reg 30(11) rumour verification and the MPM trigger
  • Integrated Filing (Governance) from 1 March 2025
  • Building the internal materiality workflow
Module 4: Related Party Transactions after the Fifth Amendment 2025
  • Schedule XII slab materiality after the Fifth Amendment
  • Reg 23 audit committee and shareholder approval
  • Omnibus RPT approvals formalised in Reg 23
  • Subsidiary RPT jurisdiction and Linde India aggregation
  • The RPT operator's playbook
Module 5: PIT foundations
  • Insider, connected person, and relative
  • UPSI 16-item list after the March 2025 amendment
  • Reg 3 communication, Reg 4 trading and the six defences
  • Reg 5 trading plan after the June 2024 overhaul
  • Regs 6 and 7 disclosure obligations
Module 6: SDD, trading window, code of conduct
  • SDD Reg 3(5) and 3(6) in detail
  • SDD vendor landscape in India
  • Automated trading window closure
  • Pre-clearance, contra trade, and the IndusInd case
  • The PIT operator's playbook
Module 7: Reg 24A secretarial audit, Reg 27 CG report, Reg 33 financials, Reg 34 BRSR
  • Reg 24A Secretarial Audit revamp
  • Reg 27 CG report and ICSI Secretarial Standards
  • Reg 33 financial results timelines
  • Reg 34 BRSR and BRSR Core assurance
  • SCORES 2.0 and the investor complaint cycle
Module 8: Enforcement, settlement and the operator's playbook
  • The IEX Oct 2025 anatomy of a PIT interim
  • RHFL, DHFL, Zee and Adani case studies
  • PIT enforcement: HDFC, IndusInd, Nucleus, Reliance
  • Settlement Scheme and Section 15G math
  • The compliance officer's system and templates