SEBI Issues Interim Order Against HB Stockholdings Limited; Rs. 2.42 Crore Impounded

HB Stockholdings Limited issued an official disclosure dated June 18, 2025, informing the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) that it had received an Interim Order cum Show Cause Notice from the Securities and Exchange Board of India (SEBI). The disclosure was issued under Regulation 30 read with Clause 20 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”). The SEBI’s order was delivered to the company on June 17 and was issued against Mr. Lalit Bhasin (Promoter and Executive Chairman) of HB Stockholdings Limited.

SEBI‘s action is taken under the provisions of Sections 11(1), 11(4), 11(4A) and 11B of the SEBI Act, 1992 and Regulation 11 of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, 2003. According to the order, the regulator has impounded a total of Rs. 2.42 crore, which it claims represent unlawful gains made by the Company as a result of these alleged violations. SEBI has reported that the Company and its Promoter engaged in practices that violated clauses (a), (b), (c), and (e) of Section 12A of the SEBI Act, and corresponding clauses (a), (b), (c), and (d) of Regulation 3, as well as sub-regulation (1) of Regulation 4 of the PFUTP Regulations.

The company, in its regulatory filing with the stock exchange, has notified that it is currently reviewing the Interim Order and looking to take appropriate action based on legal advice. The company has stated that the action will not have a material impact on its financial performance at this stage. The firm has accepted that the development could lead to temporary disruptions in operations or certain activities.

This regulatory disclosure is made in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the circular of SEBI dated November 11, 2024, which requires the timely, proper and transparent disclosure of significant events to the stock exchanges (BSE and NSE).