Authority: Adjudicating Officer, Securities and Exchange Board of India (SEBI)

Order Date: August 19, 2026

Order No.: Order/MS/KS/2026-27/32669

Case Overview

The adjudication proceedings were initiated against National Steel and Agro Industries Limited (PAN: AAACN3548H) for alleged violations in the illiquid stock options segment of the Bombay Stock Exchange (BSE). SEBI's investigation for the period April 1, 2014, to September 30, 2015, found that 81.40% of all trades (2,91,744 trades) in the segment were non-genuine, creating artificial volume. The Noticee was specifically alleged to have executed 12 reversal trades in 6 contracts, generating an artificial volume of 580,000 units. These trades were alleged to be manipulative and deceptive, violating Regulations 3(a), (b), (c), (d), 4(1), and 4(2)(a) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003.

A Show Cause Notice (ref. no. EAD-3/BM/UR/37213/2022) was issued on August 10, 2022. The Noticee did not file a substantive reply but informed SEBI that it was under the Corporate Insolvency Resolution Process (CIRP) per an NCLT order dated April 11, 2022, with Mr. Dushyant C Dave appointed as the Resolution Professional. The committee of creditors approved a resolution plan from JSW Steel Coated Products Ltd., which was subsequently approved by the NCLT, Mumbai Bench, on May 19, 2023.

Final Outcome

The Adjudicating Officer noted that pursuant to the NCLT order and a subsequent order dated March 21, 2024, the Noticee was amalgamated with JSW Steel Coated Products Limited under Sections 230-232 of the Companies Act, 2013, with an effective date of October 4, 2024. Relying on the Supreme Court's judgment in Ghanshyam Mishra and Sons Private Limited vs. Edelweiss Asset Reconstruction Company Limited, the order stated that all claims not part of the approved resolution plan stand extinguished. As the Noticee had ceased to exist as a legal entity, the adjudication proceedings were held to have become infructuous and were disposed of.

Topics: SEBI Enforcement, Illiquid Stock Options, Corporate Insolvency