New Delhi. Lloyds Enterprises and two senior executives of the company have settled a case with the Securities and Exchange Board of India (SEBI) involving alleged fraudulent activities and alleged lapses in securities market disclosures. A total of ₹4.16 crore was paid as part of the settlement. Lloyds Enterprises paid ₹1.28 crore, while company promoter and Executive Director Rajesh Rajnarayan Gupta and Chief Financial Officer (CFO) Viresh Shankar Sohoni each paid ₹1.44 crore.
According to the SEBI order, the case arose from an investigation into alleged irregularities in advances reported by the company. The market regulator received an alert from the Bombay Stock Exchange (BSE) in November 2023 regarding irregularities related to advances disclosed by the company. Following the alert, SEBI initiated an investigation into the matter and examined the activities of the company and the concerned executives, along with the disclosures made by them.
The investigation covered information provided by the company to the stock market and disclosures required under securities market regulations. The regulator examined whether the advances reported by the company and the information associated with them were in compliance with applicable rules. The role of the concerned executives and the disclosures made at their level were also examined as part of the regulatory process.
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Investigation began after BSE alert
The SEBI investigation into Lloyds Enterprises began following an alert received from the BSE in November 2023. The information provided by the exchange brought alleged irregularities related to advances reported by the company to the regulator’s attention. SEBI subsequently examined documents connected with the matter and the relevant disclosures made by the company.
For listed companies, accurate and timely disclosure of financial results and material business activities is an important part of regulatory compliance. If a company is suspected of providing inaccurate information or violating disclosure requirements, SEBI can initiate an investigation and take regulatory action against the concerned parties.
Company and executives made separate payments
According to the settlement recorded in the SEBI order, Lloyds Enterprises paid ₹1.28 crore. Promoter and Executive Director Rajesh Rajnarayan Gupta paid ₹1.44 crore, while CFO Viresh Shankar Sohoni also paid ₹1.44 crore. The two executives therefore contributed a combined ₹2.88 crore, while the company paid ₹1.28 crore. Together, the three payments amounted to ₹4.16 crore.
Under the settlement process, parties can resolve regulatory proceedings by agreeing to specified terms with the regulator. This generally involves payment of the prescribed settlement amount and compliance with other applicable conditions. In this case, the proceedings were settled after the company and the two executives made the required payments.
Focus of investigation was on disclosures and advances
The central issue in the case involved alleged irregularities relating to advances reported by the company. Following the BSE alert, SEBI examined how information concerning the advances had been reported in the company’s financial disclosures and whether the required regulatory disclosures had been made in accordance with applicable rules.
The SEBI investigation proceeded in the context of regulatory requirements concerning transparency in the securities market and the accuracy of information made available to investors by listed companies. The role of the company as well as its senior executives formed part of the regulatory proceedings.
Proceedings settled after payment
The settlement proceedings involving Lloyds Enterprises, Rajesh Rajnarayan Gupta and Viresh Shankar Sohoni have been resolved following the payment of ₹4.16 crore. According to the SEBI order, the company and the two executives made their respective payments separately.
The case highlights the importance of regulatory compliance for listed companies, particularly in relation to financial statements, advances and other material business activities. Stock exchanges or regulators can initiate scrutiny when potential irregularities are flagged in corporate disclosures. In the Lloyds Enterprises case, the investigation followed a BSE alert in November 2023 and was subsequently resolved through a settlement involving the company and the two executives.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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