SEBI re-adjudicates Channel Nine IPO fraud case after SAT remand

The core issue is whether the Noticee violated SEBI regulations by participating in a fraudulent scheme to fund the IPO of Channel Nine Entertainment Ltd. to ensure minimum subscription.

Who it concerns: Madhukar Dubey and Magnum Industrial Corporation (Proprietorship firm)

What SEBI found or ordered

• SAT remitted the matter to SEBI on September 02, 2025, granting the Noticee an opportunity to contest the case.
• The original allegation was that the Noticee was part of a funding group that fraudulently subscribed to the Channel Nine Entertainment Ltd. IPO.
• The Noticee claimed his credentials were misused by his former employer, Late Shri Vijay Jindal, and that he had no financial involvement or knowledge of the scheme.
• The Noticee submitted a reply to the Show Cause Notice on November 20, 2025, and appeared for hearings in January 2026.
• The document provided is truncated and does not contain the final findings, penalty amount, or final direction of this specific order.

Also in the document

• The case involves a remand from the Securities Appellate Tribunal (SAT) rather than a first-instance adjudication.
• The Noticee alleged that his former employer, who is deceased, misused his identity to open bank accounts and participate in the IPO funding.
• The original 2022 order imposed a joint and several penalty of Rs. 8,00,000 on thirteen noticees, but the outcome of this specific 2026 order is not stated in the provided text.