SEBI notes 53.96% revenue drop at Gretex Corporate Services Limited

It details the procedural history, the Designated Authority's recommendation, and the Noticee's defenses.

Who it concerns: Gretex Corporate Services Limited (Merchant Banker, Registration No. INM000012177); Jayant Infratech Limited (Issuer of the SME public issue in question).

What SEBI found or ordered

• SEBI conducted an inspection for the period April 1, 2021, to January 31, 2023.
• Alleged violations include non-maintenance of minimum net worth in FY 2019–20 (Regulation 7) and failure to exercise adequate due diligence for Jayant Infratech Limited's SME issue (Regulation 13).
• The Designated Authority (DA) recommended prohibiting Gretex from taking up new assignments or launching new schemes for one month.
• Gretex filed a settlement application which was rejected by SEBI.
• A Show Cause Notice (SCN) was issued on December 23, 2024, and a Post-Enquiry SCN was issued on July 11, 2025.
• A personal hearing was held on October 23, 2025, attended by the Noticee's Authorized Representative, Managing Director, and Vice President.
• The Noticee argued the net worth dip was temporary due to market conditions and that due diligence was thorough.

Also in the document

• The order notes that the Noticee's revenue declined by 53.96% from FY 2018–19 to FY 2019–20, causing a temporary dip in net worth to ₹3.57 crore, which was later recouped to ₹6.32 crore by September 30, 2020.
• SEBI noted that the provision for settlement proceedings was erroneously mentioned in the Post-Enquiry SCN and was deleted via a corrigendum dated September 12, 2025.
• The order distinguishes these enquiry proceedings from separate adjudication proceedings, noting they address different violations and have different potential outcomes.