https://www.taxtmi.com/caselaws?id=788331 Alleged violations of PFUTP Regulations and statutory disclosure and listing obligations were held to turn on diversion of preferential allotment proceeds contrary to stated objects; the governing principle applied is that fraud under PFUTP (including concealment or deceptive devices) and breaches affecting public regulatory rights cannot be validated by subsequent private shareholder ratification, so post facto amendments and resolutions do not cure prior non compliance. The decision restores the Adjudicating Officer's penalties as consistent with disclosure obligations, misuse of proceeds in preferential allotment, and the regulator's enforcement powers, reversing the appellate reliance on after the fact ratification. en-us Tue, 17 Mar 2026 00:00:00 +0530 Fri, 20 Mar 2026 08:35:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788331 Alleged violations of PFUTP Regulations and statutory disclosure and listing obligations were held to turn on diversion of preferential allotment proceeds contrary to stated objects; the governing principle applied is that fraud under PFUTP (including concealment or deceptive devices) and breaches affecting public regulatory rights cannot be validated by subsequent private shareholder ratification, so post facto amendments and resolutions do not cure prior non compliance. The decision restores the Adjudicating Officer's penalties as consistent with disclosure obligations, misuse of proceeds in preferential allotment, and the regulator's enforcement powers, reversing the appellate reliance on after the fact ratification. Case-Laws SEBI Tue, 17 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788331