SEBI v. Secunderabad Healthcare Ltd (warrant conversion allotments, 2022)
Dismissed
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.
In October 2022 a SEBI whole time member closed a remitted case against Secunderabad Healthcare, which had been accused of allotting shares on warrant conversion without full payment. Once the allottees were shown to have paid and had been cleared, the notice was disposed of with no direction.
The record
| Agency | SEBI (India) |
|---|---|
| Date filed | 2022-10-20 |
| Date resolved | 2022-10-20 |
| Court | SEBI Whole Time Member |
| Status | dismissed |
| Asset class | equities |
| Instruments | Secunderabad Healthcare equity shares allotted on conversion of warrants |
| Venue | BSE |
| Criminal parallel | No |
| Defendants | Secunderabad Healthcare Limited |
| Techniques |
What was ordered
- Civil penalty
- —
- Disgorgement
- —
- Prejudgment interest
- —
- Total relief
- —
- Alleged gain
- —
What is alleged to have happened
This order of 20 October 2022 was made by whole time member S. K. Mohanty under sections 11(1), 11(4) and 11B of the SEBI Act. It concerns a single noticee, Secunderabad Healthcare Limited, a company listed on BSE.
SEBI had issued a show cause notice in July 2019 to the company and nine allottees. It alleged that, after the company converted warrants into equity shares in 2011 and 2012, the allottees received shares without paying the full consideration, to the allottees' benefit and the loss of other shareholders. The charges invoked section 12A of the SEBI Act, Regulations 3 and 4(1) of the PFUTP Regulations and two ICDR provisions. An earlier order of April 2021 restrained the company and the allottees for two years and directed disgorgement. The Securities Appellate Tribunal set that order aside in October 2021 and sent the matter back to SEBI for reconsideration, with the annual reports and other evidence.
On reconsideration the whole time member examined bank statements showing that the full balance consideration had reached the company's account before each allotment, together with the company's annual report and its stock exchange disclosure of the board decision. Three separate SEBI orders between September 2021 and October 2022 had already cleared the allottees on the same ground, and one allottee had been cleared in the first order.
The member concluded that the allottees had paid full and adequate consideration, that no cause of action remained against the company, and disposed of the notice with no direction. No penalty, restraint or disgorgement was imposed.
The record does not show whether the company or the allottees recovered any costs, or whether SEBI appealed.
No library technique fits an unproved allegation of unpaid share consideration, so the technique list is empty.
This library tags the matter with no technique and records it as a dismissed allegation of issuer fraud. 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
- 2022-10-20 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.