Articles 11th Aug 2025
The Adjudicating Officer of SEBI has recently issued an order dated July 29, 2025, penalizing an entity for insider trading solely on circumstantial evidence, despite lack of direct evidence of communication of UPSI.
In this article, “Uneven Scales: SEBI’s adjudication order in the matter of HDFC Ltd and HDFC Bank Ltd contradicts its own precedents” published on Bar and Bench, our Partner K.C. Jacob, Senior Associate Tanya Gupta and Advocate Aarya Padhye has analyzed how SEBI’s approach in the aforesaid order has shifted drastically, contrasting with the established approach based on stricter evidentiary requirements laid down by the Hon’ble Supreme Court and followed in previous SEBI Orders. The aforesaid order has reverted to SEBI’s approach of preponderance of possibilities instead of relying of direct evidence.
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