SEBI Revokes Bharat Nidhi Settlement Order

SEBI withdraws settlement order involving Bharat Nidhi and group entities  
SEBI announced that its settlement order dated September 12, 2022, related to Bharat Nidhi Ltd, Ashoka Marketing Ltd, Arth Udyog Ltd, Matrix Merchandise Ltd, Mahavir Finance Ltd, TM Investments Ltd, Sanmati Properties Ltd, and Vineet Jain, stands revoked and withdrawn. The revocation was carried out under Regulation 28 of SEBI’s Settlement Proceedings Regulations, 2018.  

The order had originally resolved show cause notices issued against these entities for alleged violations of securities regulations. However, SEBI’s withdrawal has raised concerns about regulatory certainty, with affected parties approaching the Bombay High Court. The court has since questioned SEBI’s lack of reasoning and the absence of a hearing before revocation, citing principles of natural justice.  

Major takeaways  

• Settlement order dated September 12, 2022, revoked effective November 10, 2023  
• Entities impacted include Bharat Nidhi Ltd and seven others  
• Revocation carried out under Regulation 28 of SEBI Settlement Proceedings Regulations, 2018  
• Bombay High Court has quashed SEBI’s revocation citing violation of natural justice  
• Legal proceedings highlight importance of transparency in regulatory actions  

Sources: SEBI Official