Synopsis
India’s market regulator SEBI is probing Jindal Poly Movies for alleged securities law breaches. The investigation specializes in dealings between neighborhood companies. SEBI has also joined a class shuffle lawsuit filed by minority shareholders. This intervention aims to guide the wonderful proceedings. Jindal Poly Movies states it has obtained no reputable notices from SEBI or the NCLT.
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BusinessesSecurities and Alternate Board of India (Sebi) is investigating securities laws violations by Jindal Poly Movies and has red flagged interconnected dealings after it obtained complaints from a neighborhood of minority shareholders of the corporate, acknowledged sources responsive to the topic.
It is miles also filing an utility at nationwide company law tribunal (NCLT) as share of an ongoing class shuffle lawsuit that the minority shareholders have brought in opposition to the corporate, its promoters, board and management, they acknowledged. Or no longer it is intervention is meant to be on grounds that its investigation may perhaps well have a concerning the dwell outcomes of the wonderful proceedings in the category shuffle lawsuit.
“Last year in July, Sebi received complaints from minority shareholders alleging securities law violations. There were also certain media reports about the company. Following which, it initiated an investigation into the matter,” acknowledged a particular person mindful of the trend.
Sebi investigated transactions concerning Jindal Powertech, a linked company of Jindal Poly Movies, they acknowledged.
“The investigation is concluded and Sebi will be taking action soon. Once the regulator’s findings are concluded, it issues show cause notices to the entities,” acknowledged a supply.
The class shuffle lawsuit, a no longer regularly ever old skool appropriate manoeuvre in India, is being led by one in every of Jindal Poly Movies’ minority shareholders, Ankit Jain.
Sebi did no longer reply to ET’s emailed queries on the topic.
Jindal Poly Movies clarified that it had no longer obtained any orders or findings from Sebi concerning an investigation. A company spokesperson acknowledged it became law abiding and that each and each one transactions performed by it had been legit and compliant with relevant regulations. “The company has not received any order, or findings from Sebi regarding any investigation or any alleged securities law violations. We have also not received or been served with any application purportedly filed by Sebi before the Hon’ble NCLT,” acknowledged a company spokesperson.
Jain’s counsels acknowledged they’ve been served an utility on behalf of Sebi when contacted.
“We as counsels for Mr. Ankit Jain, have been served a corrected copy of an intervention application filed by the counsels representing the Securities and Exchange Board of India,” acknowledged Vaibhav Kakkar and Abhishek Swaroop, advocates at Saraf and Partners, in an emailed response to ET’s queries. They cited specificities of Sebi’s utility in the topic.
“Specifically, under the investigation report, Sebi has inter alia found that the lack of transparency regarding the interconnected nature of the dealings between the group companies obscured the material impact on shareholder wealth, thereby impeding informed investment decisions and in turn violating the provisions of Sebi Act, Securities Contract Regulation Act, 1956, Sebi (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, Sebi (Listing Obligations and Disclosure Requirement) Regulations, 2015 and the provisions of Listing Agreement (for the period before commencement of LODR Regulations 2015),” they acknowledged.
Jindal Poly Movies also clarified that it had no longer been issued gaze by the NCLT in the category shuffle petition filed by Ankit Jain.
“The matter presently stands reserved for orders on maintainability as of 20.11.2025. Any assertions or allegations circulating in the public domain are unverified and not before the Company in any formal proceeding,” the spokesperson acknowledged.
