The Securities Appellate Tribunal has upheld Sebi’s enforcement order against Cerebra Integrated Technologies Ltd. with modifications. The case involved financial misstatements and non-compliance with regulatory summons. While the penalty stands, the tribunal allowed partial relief, including a conditional stay on recovery subject to a deposit.
Cerebra Integrated Technologies Ltd. faced regulatory scrutiny after Sebi found discrepancies in its financial disclosures and failure to respond to multiple summons. The Securities Appellate Tribunal (SAT), Mumbai, reviewed the enforcement order and upheld Sebi’s findings, while modifying certain directions. The tribunal granted a conditional stay on the ₹2 million penalty, requiring the company to deposit 50 percent of the amount.
Key highlights
- Sebi’s original order cited misstatements in financial reports and non-compliance with summons issued between October 2023 and February 2024
- The tribunal upheld the core findings under Sections 11(1), 11(4), 11(4A), 11B(1), and 11B(2) of the Sebi Act, 1992
- Cerebra Integrated Technologies secured a stay on penalty recovery, contingent on a 50 percent deposit
- The company had failed to furnish requested documents and explanations during the investigation
- The tribunal’s decision reflects a balanced approach, enforcing accountability while allowing procedural relief
- The case underscores Sebi’s increasing vigilance over corporate governance and disclosure standards
Notable updates
- The order has implications for future enforcement actions involving financial transparency
- Cerebra’s legal team is expected to comply with the deposit condition and explore further remedies if needed
- Market reaction remained muted, with limited impact on the company’s stock price
Sources: Sebi official order (January 2025), Economic Times Legal World, Metropolitan Stock Exchange Circulars