The Securities and Exchange Board of India (SEBI) has imposed a ₹3 lakh penalty on Motilal Oswal Financial Services for breaching stockbroker regulations under SEBI (Stock Brokers) Regulations, 1992. 

SEBI’s inspection found that Motilal Oswal allowed trading terminals to operate from unauthorized locations and permitted unapproved users.

The broker also failed to identify and report fund-based activities between authorized persons and clients, violating regulatory norms. 

SEBI stated, “Such lapses undermine market integrity.” The regulator directed Motilal Oswal to pay the penalty within 45 days and ensure strict compliance with all regulatory provisions.

A Non-Compete Clause is a contractual condition that restricts an employee or party from engaging in a similar trade, business, or profession that competes with the employer after the termination of employment. Its purpose is to protect business interests, confidential information, and trade secrets.

Section 27 of the Indian Contract Act, 1872, any agreement that restrains trade or profession is void to that extent, unless it falls under reasonable exceptions like during employment or the sale of goodwill.

Indian courts usually do not support post-employment non-compete clauses unless they are fair, necessary, and not against public interest.

A Free Trade Agreement (FTA) allows countries to trade goods and services with reduced or zero tariffs, enhancing cross-border economic cooperation.

It is an arrangement where two or more countries commit to opening up their markets to one another by lowering or removing tariffs, quotas, and other trade barriers, making it easier for goods and services to move between them.

However, to prevent misuse of such benefits, the Indian government has recently clarified the definition of "proof of origin"—a key requirement to avail FTA benefits. This ensures only goods genuinely manufactured or sourced from FTA partner countries qualify for duty concessions.

Predatory pricing is when a dominant company deliberately lowers its product prices — sometimes even below the cost of production — to drive competitors out of the market or stop new ones from entering.

Once rivals are eliminated, the company raises prices again to recoup losses and gain control of the market. This practice is illegal in many countries, including India, under the Competition Act, 2002.

Recently, the Competition Commission of India notified the Determination of Cost of Production Regulations, 2025, to curb predatory pricing and deep discounting in e-commerce and quick-commerce sectors.

Companies found guilty can face heavy fines, damage to their reputation, and restrictions on future pricing. The goal is to protect fair competition and prevent market abuse.

A "pump and dump" scheme is a fraudulent practice where individuals artificially inflate a stock's price through false or misleading promotions, often via social media, YouTube, or messaging platforms. 

Once the stock price rises due to increased investor interest, the perpetrators sell their shares at the elevated prices, making substantial profits. 

Subsequently, the stock's value plummets, leaving unsuspecting investors with significant losses.

Recently, in the Sadhna Broadcast case, actors Arshad Warsi and Maria Goretti were implicated for promoting the stock through misleading YouTube videos, leading to inflated prices before selling their shares.

The Allahabad High Court has held that a company can be wound up under Section 433(f) of the Companies Act only if the Court finds its continued existence is a threat to the commercial world.

Justice Pankaj Bhatia ruled that for winding up on “just and equitable” grounds, the Court must determine the company’s status poses risks to the broader business environment.

In the present case, the Court rejected the winding-up plea, noting the respondent company’s conduct did not endanger the commercial world and directed payment of admitted dues instead.

The Kerala High Court has held that the benefit of Section 14(1) of the Limitation Act cannot be liberally applied just to save a case from being time-barred.

The Court ruled that the exclusion of limitation period under Section 14 is available only if all required ingredients, such as bona fide and diligent prosecution of the earlier suit, are satisfied.

The bench found the plaintiffs were not entitled to this benefit as they continued litigation despite knowing their suit was not maintainable.

The Court emphasized that Section 14 should not be stretched beyond its statutory limits merely to save a lis.

The Securities and Exchange Board of India (SEBI) has barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 others from the securities market for one to five years for their role in a pump-and-dump scheme involving Sadhna Broadcast shares.

The couple allegedly promoted the stock through misleading YouTube videos and coordinated trades, inflating prices before selling.

Warsi made ₹41.7 lakh and Goretti ₹50.35 lakh in illegal gains. Both have been fined ₹5 lakh and ordered to return their unlawful gains.

In total, SEBI has directed all 59 entities to disgorge ₹58.01 crore in illegal profits, along with 12% annual interest until full repayment.

SEBI has barred former IndusInd Bank CEO Sumant Kathpalia, ex-Deputy CEO Arun Khurana, and three others from the securities market over insider trading allegations.

They allegedly sold shares while possessing unpublished price-sensitive information (UPSI) about a ₹1,529 crore loss to the bank’s derivative portfolio.

These trades occurred between December 2023 and March 2025, prior to public disclosure, which led to a 27% drop in the bank’s share price.

SEBI has also impounded ₹19.78 crore, said to be the gains from the trades, and directed that the amount be held in fixed deposits under SEBI’s lien. The investigation is ongoing.

The Delhi High Court has held that a liquidated damages clause does not imply that the entire amount in a contract can be recovered automatically.

The party claiming liquidated damages must establish actual loss or damage on account of breach of contract; mere reference to a stipulated amount would not do.

The Court clarified that liquidated damages were a genuine estimate of loss, rather than punishment, and payment was restricted to the proved loss.

The decision reiterates that reasonable compensation rather than unexpected profits is the objective, and claimants have to establish their losses in order to receive damages.

The Lokpal has cleared former SEBI chairperson Madhabi Puri Buch of all corruption and conflict of interest allegations linked to the Hindenburg report on the Adani Group.

The complaints, which stemmed from a Hindenburg Research report alleging her and her husband's investments in offshore funds linked to the Adani Group, were found to be "untenable, unsubstantiated, and bordering on frivolity".  The Lokpal found no credible evidence for further investigation.

The Lokpal emphasized that the allegations were based on "presumptions and assumptions" without any verifiable material, and noted that Buch had redeemed the investments before SEBI's investigation into the Adani Group commenced.

This decision effectively closes the case, affirming Buch's professional integrity. 

The Delhi High Court has issued notice in a contempt plea against BluSmart Mobility, Gensol Engineering, and others for allegedly failing to comply with a court order regarding 10 undelivered Tata Tigor electric vehicles (EVs).

The court had previously appointed a receiver and directed the companies to furnish information and access to the EVs, restraining the companies from selling or transferring the EVs.

The petitioner, Shefasteq, alleges that the respondents have not furnished necessary information or permitted inspection, hindering the receiver from functioning and constituting wilful disobedience.

The court will next consider whether further steps are required if the companies do not comply.

On May 27, 2025, the Securities and Exchange Board of India (SEBI) issued guidelines detailing the appointment process for key management personnel at Market Infrastructure Institutions (MIIs), including stock exchanges, clearing corporations, and depositories. 

This initiative aims to enhance transparency, governance, and standardization in hiring senior executives at critical financial market institutions.  

By formalizing the procedure, SEBI seeks to strengthen the regulatory framework overseeing India's financial markets and improve institutional accountability in leadership appointments.

The framework outlines the selection, approval, and disclosure procedures to ensure fair and consistent practices across MIIs.

The National Company Law Tribunal (NCLT), Bengaluru, has dismissed an insolvency petition filed against Dunzo by its invoice discounters, ruling the plea as not maintainable.

The decision, delivered after multiple delays, provides temporary relief to the struggling quick commerce firm. Dunzo has faced multiple insolvency actions due to unpaid dues from several vendors, including Velvin Packaging and Betterplace Safety Solutions.

The company, grappling with a severe liquidity crunch, reported a ₹1,801 crore loss in FY23 and owes vendors like Google India and Facebook India a combined ₹11.4 crore.

The Tribunal has earlier criticized Dunzo for delaying its responses to legal notices.