SEBI v. Jolly Plastic Industries Ltd and others (funded preferential allotment, 2022)

Judgment entered

Checked against the primary document on October 9, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In July 2022 a SEBI adjudicating officer imposed a single Rs 25,00,000 penalty, shared jointly and severally among 14 noticees, in the Jolly Plastic Industries case. The order finds that the company and connected firms funded the subscription money for a 2012 preferential allotment, giving a false picture of fund inflow.

The record

Structured fields for this action, as recorded in our case library.
Agency	SEBI (India)
Date filed	2022-07-29
Date resolved	2022-07-29
Court	SEBI adjudicating officer
Status	judgment
Asset class	equities
Instruments	Jolly Plastic Industries Limited shares (May 2012 preferential allotment)
Venue	BSE
Criminal parallel	No
Defendants	Jolly Plastic Industries Limited (entity) ; Ashok Kumar Bansal (individual) ; Mamta Bansal (individual) ; Satish Kumar Bansal (individual) ; Nitin Gupta (individual) ; Pankaj Agarwal (individual) ; Brijesh Kumar Anand (individual) ; Manoj Anand (individual) ; Monika Anand (individual) ; Ravi Chopra (individual) ; Aglow Financial Services Pvt Ltd (entity) ; Svam Software Limited (entity)
Techniques

What was ordered

Civil penalty: —
Disgorgement: —
Prejudgment interest: —
Total relief: —
Alleged gain: —
Penalty as published: 2.5m INR

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in INR. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

The order of 29 July 2022 follows references from BSE and a SEBI investigation of trading in the shares of Jolly Plastic Industries Limited from 2012 to 2013. It concerns the company's allotment on 2 May 2012 of 54,00,000 shares at Rs 10.50 to 47 non-promoter investors, listed on BSE from 19 July 2012. Fourteen noticees were proceeded against: the company, ten allottees and three connected firms, Aglow Financial Services, Svam Software and Shridhar Financial Services. Only twelve are named in this record.

SEBI alleged that the connected firms, which shared directors or relatives with the company, supplied the money used by allottees to pay for their shares, for example Rs 25,00,000 reaching Ashok Kumar Bansal from one of the firms before he paid Rs 10,50,000, and that allottees also passed money to one another. It said the allotments were therefore made without real consideration and that this breached section 12A of the SEBI Act and Regulations 3(b) to (d) and 4(1) of the PFUTP Regulations.

The adjudicating officer found that the company and its connected firms had funded the allottees' subscriptions, so the shares were issued without genuine payment and the market was given a wrong impression of a real inflow of funds.

The penalty is Rs 25,00,000 under section 15HA, imposed jointly and severally on all fourteen noticees and payable within 45 days. The officer said gain and loss could not be quantified, that no earlier default was on record, and that the notice was issued more than eight years after the events, which he treated as mitigating.

The record does not show whether the penalty was paid or appealed, how it was shared among the noticees, or what the shares traded at later.

This library tags the matter as no specific technique, because the finding is a funded preferential allotment rather than one of the library's trading methods. The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

Timeline

2022-07-29 SEBI adjudication order (29 July 2022)

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Record added October 8, 2026. submit a correction.