𝐑𝐞𝐠𝐬𝐭𝐫𝐞𝐞𝐭 𝐋𝐚𝐰 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐬 𝐒𝐞𝐜𝐮𝐫𝐞𝐬 𝐒𝐞𝐭𝐭𝐥𝐞𝐦𝐞𝐧𝐭 𝐰𝐢𝐭𝐡 𝐒𝐄𝐁𝐈 𝐟𝐨𝐫 𝐏𝐚𝐫𝐭𝐢𝐞𝐬 𝐢𝐧 𝐏𝐢𝐫𝐚𝐦𝐚𝐥 𝐄𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞𝐬 𝐋𝐢𝐦𝐢𝐭𝐞𝐝 𝐈𝐧𝐬𝐢𝐝𝐞𝐫 𝐓𝐫𝐚𝐝𝐢𝐧𝐠 𝐂𝐚𝐬𝐞

SEBI has issued a settlement order concerning Greatdeal Finconsult Advisors LLP, Mrs. Benaifer Jijina, and Mr. Khushru Burjor Jijina related to its investigation into the trading of Piramal Group [Piramal Enterprises Limited (PEL)] shares.

The Applicants were represented by Regstreet Law Advisors.

SEBI investigated trading in PEL shares between April 1, 2018, and May 31, 2019, to determine if the trades were made using Unpublished Price Sensitive Information (UPSI). SEBI alleged that the Applicants made unlawful gains based on UPSI, as one Applicant was the MD of Piramal Capital & Housing Finance Limited (PCHFL), which significantly impacted PEL’s financial results. The alleged violations were of Regulation 3(1) and 4(1) of SEBI (PIT) Regulations 2015, and Section 12A and 27 of the SEBI Act 1992.

Globally, settlement is often preferred by clients in the securities market to avoid the complexities and duration of litigation. Despite the possibility of favorable outcomes in judicial forums such as the Federal Court or Court of Appeals in the USA against the U.S. Securities and Exchange Commission (SEC), or the Supreme Court and Securities Appellate Tribunal (SAT) in India, regulators like SEC and SEBI typically issue orders against the parties involved, causing potential irreparable damage. In India, SEBI’s orders are statistically over 99% negative against the noticees. Even among the rare exonerations, there is an increasing trend of SEBI reviewing its orders. Thus, settlement provides a quicker resolution of disputes or allegations in line with statutory provisions.

A copy of the settlement order, as available publicly on SEBI’s website, is enclosed.

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