SAT sets aside SEBI's ₹5 lakh penalty, orders re-hearing

This order addresses the re-adjudication of a penalty previously imposed on Shri Shreedhar Yellaiah Kodam for alleged market manipulation in Well Pack Papers and Containers Limited (WPPCL) shares, following a Securities Appellate Tribunal (SAT) ruling that the original order violated natural justice principles.

Who it concerns: Shri Shreedhar Yellaiah Kodam (Noticee); Well Pack Papers and Containers Limited (WPPCL)

What SEBI found or ordered

• SAT set aside the original penalty of Rs. 5,00,000/- imposed on February 16, 2015, directing SEBI to reconsider the case after granting the Noticee an opportunity to defend.
• SEBI alleged the Noticee was part of a 51-member group that executed synchronized trades and off-market transfers to manipulate WPPCL share prices between November 2008 and June 2010.
• The Noticee claimed to be a victim of identity theft by an individual named Paras Chaplot, stating he did not knowingly open the bank or demat accounts used for trading.
• The Noticee argued his contribution to market volume was minimal (0.01% in Period I and 0.00% in Period II) and inconsistent with his socioeconomic background.
• The Adjudicating Officer is currently examining whether the Noticee violated SEBI (PFUTP) Regulations and determining the appropriate penalty quantum.

Also in the document

• The original penalty was imposed in 2015, but the current proceedings are a re-hearing mandated by a SAT order dated February 13, 2026.
• The Noticee alleges that the accounts were opened and operated by a third party (Paras Chaplot) without his knowledge or benefit.
• The case involves allegations of coordinated trading by a large group (51 members) rather than isolated individual actions.