SEBI v. United Phosphorus Limited and Jaidev Rajnikant Shroff (routing of funds via UBS accounts, settlement, 2024)

Settled

✓ 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. 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 October 2024 SEBI settled proceedings against United Phosphorus Limited and its promoter Jaidev Shroff, who were alleged to have used an overseas UBS account and a foreign institutional investor sub-account to trade the company's own shares in India. They neither admitted nor denied the allegations and paid about Rs 20.23 crore.

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

202m 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

This settlement order, dated 30 October 2024, covers United Phosphorus Limited (UPL) and its promoter and executive director Jaidev Rajnikant Shroff. SEBI opened a suo-moto investigation after a press query and looked at the period from January 2006 to March 2008, asking whether funds were routed into the Indian market through overseas accounts with UBS AG.

A show cause notice of 28 February 2024 alleged that UPL, assisted by Mr Shroff, used a sub-account of a SEBI-registered foreign investor, Matterhorn Advisory Singapore, to trade indirectly in UPL's own shares. The route was said to run through a UBS account in the name of Tulippe Universal Limited, of which Mr Shroff was beneficial owner and controller, funded by UPL's wholly owned Mauritius subsidiary, which hid the true source of the money. SEBI put the notional gain at about Rs 4.2 crore, and also alleged that UPL misrepresented its shareholding in annual reports. The notice invoked regulations 3 and 4 of the PFUTP Regulations and section 12A of the SEBI Act.

Both applicants sought to settle without admitting or denying the findings. SEBI's internal committee proposed indicative amounts of Rs 55.44 lakh for UPL and Rs 6.00 crore for Mr Shroff, plus disgorgement for him of Rs 13.67 crore, made up of Rs 4.29 crore of gains and Rs 9.37 crore of interest at 12 per cent from February 2006. The applicants offered the aggregate, Rs 20,22,52,793.14, which the advisory committee and the panel of whole-time members accepted, and the money was remitted in October 2024.

The order disposes of the notice and bars further enforcement for the same violations, while allowing SEBI to act again if representations prove untrue or undertakings are breached.

The record does not show any finding on the merits, since a settlement order makes none, nor the effect on UPL's share price or on other investors.

This library tags the matter as misleading issuer disclosure, because of the alleged concealment of the company's own trading and shareholding. 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. 2024-10-30 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 page
• Order (PDF)

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.