SEBI finds ₹107.76 crore marketing commission paid to promoter entity
This order addresses SEBI's investigation into Setco Automotive Limited and its subsidiaries regarding alleged violations of securities laws, specifically concerning the diversion of funds to promoter entities through marketing commissions and the accuracy of financial statements for FY 2019-20 to FY 2021-22.
Setco Automotive Ltd., Setco Auto Systems Pvt. Ltd., Harish Sheth, Udit Harish Sheth, Arun Arora, Ashok Kumar Jha, Suhasini Somesh Sathe, Rovinder Kumar Singla, Urja Harshal Shah, and Jatinder Bir Singh Gujral.
- SEBI investigated whether financial statements for FY 2019-20 to FY 2021-22 were prepared in accordance with Accounting Standards.
- SEBI alleged diversion of funds to promoter entities (SEPL) via marketing/liaisoning commissions, including a one-time lump sum of Rs. 107.76 crores paid in 2021-22.
- SEBI alleged that Setco Auto Systems Pvt. Ltd. raised Rs. 265 crores from India Resurgence Fund (IRF) and Setco Automotive Ltd. raised Rs. 350 crores from IRF.
- SEBI issued a Show Cause Notice dated October 14, 2024, seeking directions to prohibit certain noticees from dealing in the securities market and imposing monetary penalties.
- The order cites violations of the SEBI Act, PFUTP Regulations, and LODR Regulations.
Written from the document by AI, and checked against it. The original below is authoritative.
The original document
Document details
| Official title | Order in the matter of Setco Automotive Limited |
| Source body | Securities & Exchange Board of India (SEBI) — enforcement orders |
| Reference number | — |
| Status | closed (order) |
| Year | 2026 |
| Closing date | — |
| Documents | 1 |