SEBI issues Warning-cum-Advisory Letter over non-disclosure of DGFT and FDA actions

SEBI has issued a Warning-cum-Advisory Letter dated 29.09.2026 (received 30.09.2026) to the company.

Thu 1 Oct 2026

SEBI Warning Letter Date

29.09.2026 (received 30.09.2026)

DGFT Denied Entity List Order

August 13, 2024

FDA Maharashtra Letter Date

January 10, 2025

Regulatory Violation

Non-disclosure of two material events under Regulation 30 of LODR

What happened

SEBI's Corporation Finance Department issued a Warning-cum-Advisory Letter dated September 29, 2026, received by the company on September 30, 2026, relating to non-compliance with Regulation 30 read with Schedule III of the LODR Regulations.

Background

SEBI examined a complaint alleging non-disclosure of material events, and obtained NSE's comments and the company's replies dated March 19, 2026, March 24, 2026 and September 13, 2026.

Two events were found undisclosed

• The DGFT order dated August 13, 2024 placing the company on the Denied Entity List, blacklisting its Import Export Code. The company said it received the order the same day; disclosure was due by August 14, 2024.
• The Food and Drug Administration, Maharashtra letter dated January 10, 2025, administering a strict warning under the Drugs and Cosmetics Act, 1940. Disclosure was due by January 11, 2025.

SEBI noted the company's disclosure dated January 27, 2025 related only to the DGFT adjudication order dated January 7, 2025, with no reference to the placement on the Denied Entity List or its revocation.

On the FDA letter

The company argued the letter was a general advisory communication alleging no specific non-compliance. SEBI found that explanation inconsistent with the letter, which records that Propylene Glycol manufactured by the company was declared not of standard quality by Government Analysts of the Central Laboratories, refers to four show cause notices, and administers a strict warning.

SEBI's direction

SEBI said the non-compliances are viewed seriously, warned and advised the company to be careful in future and improve compliance standards, failing which appropriate enforcement action may be initiated under securities laws. The company has further been advised to:

• disclose forthwith the January 10, 2025 letter and the August 13, 2024 Denied Entity List order, with the explanation for the delay;
• put in place adequate measures for timely disclosure of Schedule III events;
• place the letter and corrective steps before its Board of Directors;
• disclose this letter to the stock exchanges.

What it means for investors

This is an advisory and warning, not a monetary penalty or a trading restriction. The company has stated there is no material impact on its financials, operations or other activities. However, the letter does bring to light two earlier regulatory actions — an import-export blacklisting and a product quality warning on Propylene Glycol — which investors may wish to track for further developments, along with the company's compliance record.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.