Legal9 May 2026, 01:01 pm
Setco: SAT Stays SEBI Order Requiring ₹208.77 Cr Payment
AI Summary
The Securities Appellate Tribunal (SAT) has stayed the operation of a SEBI order dated February 5, 2026, against Setco Automotive Ltd's promoters. The SEBI order required a payment of approximately ₹208.77 Crore, debarment from accessing the securities market, and imposed a penalty. The SAT stay, granted on May 8, 2026, is subject to certain conditions. The original SEBI investigation concerned financial statements from FY 2019-20 to FY 2021-22 and alleged diversion of funds to promoters via marketing commissions and preference share investments.
Key Highlights
- SAT stays SEBI order against Setco promoters, pending appeal.
- SEBI order required ₹208.77 Crore payment and market debarment.
- The appeal, No. 120 of 2026, was filed by Setco promoters.
- SEBI alleged fund diversions via marketing commissions and investments.
- SAT stay is conditional, as specified in its interim order.