NSE circular QJA/SS/IVD-2/ID9/32543/2026-27 · 31 Jul 2026
Official title
SEBI Order in matter of trading activities of certain entities in the Scrips of SecureKloud Technologies Limited.
Official record
Open source pageSummary
Check the official recordSEBI has issued a final order against Mr. Suresh Venkatachari and Mr. R S Ramani for violating insider trading regulations by trading in the scrip of SecureKloud Technologies Limited while in possession of unpublished price sensitive information (UPSI) regarding financial misstatements. The investigation covered the period from April 1, 2017, to November 2, 2019. SEBI has imposed a two-year debarment from the securities market on both individuals, to commence after their previous debarment periods expire, and levied a monetary penalty of Rs. 10 lakh each. The proceedings against a third noticee, Mr. M. V. Bhaskar, were dropped. The noticees are required to pay the penalty within 45 days of receiving the order.
What you must do
Key dates
Who is affected
If you do not comply
| Department: Investigation | |
|---|---|
| Download Ref No: NSE/INVG/75529 | Date: July 31, 2026 |
| Circular Ref. No: 061/2026 |
To All NSE Members,
Sub: SEBI Order in matter of trading activities of certain entities in the Scrip of SecureKloud Technologies Limited.
This has reference to SEBI order no. QJA/SS/IVD-2/ID9/32543/2026-27 dated July 31, 2026, wherein SEBI has prohibit and restrain Noticees No. 1 and 2 from accessing the securities market and further prohibit from buying, selling or otherwise dealing in securities (including units of mutual funds), directly or indirectly, or being associated with the securities market in any manner, whatsoever, for the following period, from the date of this order: -
| Noticee No. | Name of the Noticee | PAN | Period of Debarment |
|---|---|---|---|
| 1 | Mr. Suresh Venkatachari | ATNPS3289H | 2 Years |
| 2 | Mr. R S Ramani | AHVPR9966J | 2 Years |
The detailed order is available on SEBI website - http://www.sebi.gov.in
Further, the consolidated list of such entities is available on the Exchange website http://www.nseindia.com home page at the below mentioned link:
https://www.nseindia.com/regulations/member-sebi-debarred-entities
Members are advised to take note of the above and ensure compliance.
In case of any further queries, members are requested to email us at dl-invsg-all@nse.co.in.
National Stock Exchange of India Limited For and on behalf of National Stock Exchange of India Limited
Vikram Narvekar Senior Manager
Annexure: SEBI Order in matter of trading activities of certain entities in the Scrip of SecureKloud Technologies Limited.
[Image omitted. See the official document.]
QJA/SS/IVD-2/ID9/32543/2026-27 SECURITIES AND EXCHANGE BOARD OF INDIA ORDER
Under Sections 11(1), 11(4), 11(4A), 11B (1) and 11B (2) read with Section 15 G of the Securities and Exchange Board of India Act, 1992 read with Rule 4 of Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995.
In respect of:
| Sr. No. | Name | PAN |
|---|---|---|
| 1 | Mr. Suresh Venkatachari | ATNPS3289H |
| 2 | Mr. R S Ramani | AHVPR9966J |
| 3 | Mr. M V Bhaskar | AAHPV8843M |
Note: The above entities are hereinafter individually referred to as Noticee No. 1, 2 and 3, respectively, or by their respective names and are collectively referred to as ‘the Noticees’.
In the matter of trading activities of certain entities in the scrip of SecureKloud Technologies Ltd.
| Contents | Page No. |
|---|---|
| A. Introduction………………………………………………………………………..…………....…2 | |
| Interim and Final Order……………………………………………………………..………..…2 | |
| Investigation……………………………………………………………………………..……......4 | |
| Appeal before the Hon’ble Securities Appellate Tribunal…………………….……....…....5 | |
| B. Show Cause Notice………………………………………………………….…………….......…5 | |
| C. Inspection/Replies and Hearing………………………………………………………............5 | |
| D. Consideration of the issues and findings……………………………………………….....…6 | |
| (i) Consideration of technical objections and findings…………………………....…… ….…6 | |
| (a) SCN is vitiated by inordinate delay and laches……………………………………….....6 | |
| (b) Subject matter already decided and in knowledge of SEBI before investigation…....9 | |
| (c) Penalty already paid………………………………………………………………….........10 |
Order in matter of trading activities of certain entities in the scrip of SecureKloud Technologies Limited. Page 1 of 55
Order in matter of trading activities of certain entities in the scrip of SecureKloud Technologies Limited. Page 2 of 55
| Contents | Page No. |
|---|---|
| (ii)Consideration of merits and findings……………………………………….……. ………..11 | |
| (a) Insider………………………………………………………………………………........…16 | |
| (b) Unpublished price sensitive information / UPSI Period………………………….….18 | |
| (i) Actual impact on price; whether an essential ingredient for an information to be UPSI?..........................................................................................................19 | |
| (ii) UPSI Period………………………………………………………….….……. …........22 | |
| (c) Whether pledging or invocation of pledge of shares amounts to trading………...23 | |
| Trading of Noticee No. 1………………………………………………….…….. …...25 | |
| Trading of Noticee No. 2………………………………………………….………..…37 | |
| E. Conclusion……………………………………………………………………….….……....43 | |
| F. Disgorgement…………………………………………………………………………..…..49 | |
| Calculation of wrongful gain (by avoidance of loss) and disgorgement………….. 50 | |
| G. Orders and Directions………………………………………………………………….…54 |
A. Introduction.
Interim and Final Order.
(a) financial mis-reporting/irregularities by promoters and management of and the resignation of the Company’s statutory auditor, viz. Deloitte Haskins and Sells (“Deloitte”), citing various corporate governance issues.
Order in matter of trading activities of certain entities in the scrip of SecureKloud Technologies Limited. Page 3 of 55
(b) SecureKloud was inflating its sales since FY 2016-17 till FY 2018-19 by booking fictitious revenue with various entities namely, Ensys Technologies Inc, Idol Solutions Inc. and Intuit Micro Technologies LLC. These entities were controlled /managed by the Promoters / Directors of the Company, namely Noticee No. 1 and Noticee No. 2.
(c) There were no actual sales to these entities and there were no actual payments received from these entities. The amounts shown as received by SecureKloud were funded by the Company itself.
(d) The outstanding receivables shown from these three entities as on March 31, 2017, March 31, 2018 and March 31, 2019 were fictitious and the same were either written off or adjusted against one vendor, namely Nation Star IT Services Limited.
“26. I note that the sale of shares by two promoter Noticees during the investigation period when the inflated financial statements were published points towards possible violations of provisions of SEBI (Prohibition of Insider Trading) Regulations, 2015. SEBI would separately examine this issue and would take appropriate action, including disgorgement of illegal gains, if any.”
(a) In light of the misrepresentation of financial statements of the Company, the consolidated revenue of the Company rose manifold within short span of time i.e. from Rs. 271.93 Crore in FY 2015-16 to Rs. 850.39 Crore in FY 2018-19.
(b) Once the Company stopped booking fictitious revenue (from 2019-20 onwards), its revenue decreased to Rs. 386.43 crore during FY 2019-20.
(c) Further, the Company also inflated its balance sheet size by capitalizing fictitious expenditure towards development of software, resulting in its balance sheet size increasing manifold
Order in matter of trading activities of certain entities in the scrip of SecureKloud Technologies Limited. Page 4 of 55
within a short span of time i.e. from Rs.44.76 crore as on March 31, 2013 to Rs.997.99 crore as on March 31, 2019.
(d) After impairment and other write offs, balance sheet size of the Company reduced from Rs. 997.99 crore to Rs. 242.82 crore i.e. in single financial year, Rs. 755.17 crore was wiped off from balance sheet of the Company.
(e) Further, the statutory auditor of SecureKloud viz. Deloitte resigned as company’s statutory auditor citing various corporate governance issues including fraud relating to irregularities and inconsistencies in financial statements and books of accounts of the Company.
(f) As observed from the corporate announcement on NSE by SecureKloud, a fraud report dated September 13, 2019 was also filed by the statutory auditor Deloitte to the Central Government under Section 143(12) of the Companies Act, 2013 (As stated at Para 54 of the Final Order).
