Khandwala Securities Limited has received an administrative warning letter from the Securities and Exchange Board of India (SEBI) dated June 9, 2026, which was received by the company on June 10, 2026. The disclosure is made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Nature of SEBI Action

The SEBI warning letter pertains to violations of:

  • SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations)
  • SEBI (Merchant Bankers) Regulations, 1992 (MB Regulations)

The violations relate to a draft offer document (DRHP) dated February 26, 2025, filed by Khandwala Securities Limited in respect of an initial public offering for M/s ArMee Infotech Limited.

Specific Violations Identified

SEBI observed that the "Financial Information" section of the draft offer document did not contain the independent auditor's examination report on restated consolidated financial information as mandated under:

  • Regulation 24(2)(b) of ICDR Regulations
  • Clause 11 of Part A of Schedule V of the ICDR Regulations

Subsequently, the offer document was returned by SEBI in terms of clause 1.2 of Annexure A of SEBI Circular dated February 06, 2024.

The omission resulted in non-compliance with:

1. Regulation 24(2)(b) read with Clause 11 of Part A of Schedule V of ICDR Regulations, 2018

2. Failure to exercise reasonable care and due diligence, resulting in non-compliance with Regulation 24(3) of ICDR Regulations read with Clause 4 of Schedule III read with Regulation 13 of MB Regulations, 1992

SEBI Directive

SEBI has warned the company to be careful in future and improve compliance standards to avoid recurrence of such instances. The letter states that appropriate enforcement action would be initiated in case of future violations.

Company Actions and Implications

The company is required to:

1. Disclose this letter to recognized stock exchanges under Regulation 30 of LODR Regulations, 2015

2. Place the matter before the board of directors in the upcoming board meeting

3. Ensure compliance with regulations and exercise due caution to avoid recurrence

The company has confirmed that there is no impact on financial, operational or other activities of the company as a result of this administrative warning.