SEBI finds promoter manipulated Timbor Home shares via off-market transfers

This order re-examines the case against Paresh Nathalal Chauhan regarding alleged market manipulation and offloading of shares in Timbor Home Limited, following a directive from the Securities Appellate Tribunal (SAT) to ensure the noticee was properly served with the original Show Cause Notices and given a fair hearing.

Who it concerns: Paresh Nathalal Chauhan (Noticee); Timbor Home Limited (Company)

What SEBI found or ordered

• SAT remanded the case to SEBI because the original Show Cause Notices (SCNs) were not properly served to the Noticee, denying him the right to reply.
• SEBI granted multiple hearing opportunities and adjournments between August and December 2025 to comply with natural justice principles.
• The Noticee claimed his KYC documents were misused by his Chartered Accountant, Ankit Mehta, to open accounts without his consent.
• The Noticee argued he was a 'pass-through' conduit for shares and did not retain any economic benefit or derive gains from the transactions.
• The Noticee disputed the calculation of disgorgement amounts, stating SEBI treated gross sale value as ill-gotten gains without deducting costs.
• SEBI noted that in a separate appeal (No. 259/2022), the SAT had already upheld the factual findings regarding the scheme and modus operandi alleged in the SCN.

Also in the document

• The investigation period covers April 1, 2014, to May 30, 2015.
• SEBI found that promoter entities transferred shares off-market to connected entities, which then circulated bulk SMS to recommend buying the shares and manipulated prices before selling.
• The Noticee's defense relies on the claim that his accounts were used by a third party (Ankit Mehta) for fraudulent purposes, a claim SEBI is currently evaluating against the established facts of the scheme.