SEBI v. Triveni Enterprises Ltd and others (misuse of preferential-issue proceeds, 2022)

Judgment entered

✓ Checked against the primary document on October 8, 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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A SEBI adjudicating officer fined Triveni Enterprises about Rs 3.4 crore for diverting money raised in two 2014 preferential share issues away from the stated purposes and for failing to make the required disclosures. The two directors named in the notice were not penalised because the fraud charges against them were not sustained.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

—

Alleged gain

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Penalty as published

34m 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 adjudicating officer of the Securities and Exchange Board of India decided the matter on 29 August 2022. The noticees were Triveni Enterprises Limited, a textile trading company listed on the BSE (and earlier on the Delhi Stock Exchange), and two directors, Bhavin Hemendra Nagda and Ramchandra Ramhit Varma. The company had raised about Rs 5.46 crore in February 2014 and Rs 2.75 crore in March 2014 by issuing shares at Rs 15 to 80 allottees.

BSE flagged possible misuse of the funds, and SEBI investigated the period October 2013 to December 2014. SEBI alleged that the company did not make the required disclosures on utilisation of the proceeds and that it and its directors used the money in ways that differed from what was stated, in breach of section 12A of the SEBI Act and the PFUTP Regulations.

The order finds that the company breached section 12A and the PFUTP Regulations, as part of the proceeds were moved to outside parties under an agreement that was later cancelled and the money had not been brought back. It records investor loss of about Rs 2.65 crore plus interest. It holds that the charges against the two directors could not be sustained.

The company was penalised Rs 3,30,16,822 under section 15HA, which the officer built from the unreturned amount plus interest at 6 percent, and Rs 10 lakh under section 23E of the securities contracts law for the disclosure failures. The Rs 10 lakh payment depends on the Supreme Court's decision in a pending appeal on that provision. The total is Rs 3,40,16,822.

The record does not show whether the company appealed, whether any funds were later recovered, or any criminal case. The order describes none. This library treats the matter as issuer fraud rather than trading-based manipulation, which is a borderline fit.

This library tags the matter as misleading issuer disclosure. 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.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Misleading issuer disclosure — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2022-08-29 SEBI order

Primary documents

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

• SEBI order

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

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added October 8, 2026. submit a correction.