SEBI abates proceedings against deceased director in Bonanza Portfolio case

It primarily resolves the status of proceedings against BPL's directors, including one who passed away before the notice was issued.

Who it concerns: Bonanza Portfolio Limited (Noticee 1), Satya Prakash Goel (Noticee 2, deceased), Shiv Kumar Goel (Noticee 3), Surendra Kumar Goel (Noticee 4), Vishnu Kumar Aggarwal (Noticee 5), Anant Gupta (Noticee 6), and Pradeep Kumar (Noticee 7).

What SEBI found or ordered

• Proceedings against Satya Prakash Goel (Noticee 2) are abated because he died on May 26, 2026, before the Show Cause Notice was issued.
• SEBI found that no liability could be fastened upon directors Noticees 3 to 7 as they were not shown to be responsible for the conduct of the business.
• The Designated Authority recommended disposing of the proceedings without adverse action against all noticees.
• The case involves BPL's role as merchant banker for NCD VII and NCD VIII issues by Shakti Finance Limited during April 2022 to April 2024.

Also in the document

• SEBI cited the legal maxim 'actio personalis moritur cum persona' to justify abating proceedings against the deceased director.
• The order notes that while directors can be liable under Section 27 of the SEBI Act, specific responsibility for the conduct of the business must be established, which was not done for Noticees 3-7.