Ishan International Limited receives Show Cause Notice from SEBI over IPO Proceeds Utilization
Ishan International Limited has received a Show Cause Notice (SCN) dated August 10, 2026, from the Securities and Exchange Board of India (SEBI). The notice relates to an investigation into the utilization of proceeds amounting to ₹18.24 crore, which the company raised through its IPO in September 2022.The SCN alleges a violation of certain provisions related to the use of funds, specifically referencing SEBI (PFUTP) Regulations, 2003 and the SEBI (LODR) Regulations, 2015 read with Ind AS 28 and Section 27 of the SEBI Act, 1992.
The company is currently examining the contents of the SCN and plans to submit a response within the prescribed timeline. Furthermore, Ishan International Limited and its concerned Key Managerial Personnel intend to utilize the settlement mechanism under the SEBI (Settlement Proceedings) Regulations, 2018, and plan to apply for settling the proceedings.
The litigation has been filed with the Securities and Exchange Board of India, Enquiries and Adjudication Department - 2, Mumbai.
Key details regarding the dispute are provided below:
| Particulars | Details |
|---|---|
| Opposing Party | Securities and Exchange Board of India (SEBI) |
| Date of Dispute Initiation | August 10, 2026 |
| Brief Details of Dispute | Investigation into the utilisation of ₹18.24 crore raised by the Company through its IPO in September 2022, alleging a violation of certain SEBI regulations. |
| Current Status | The Company is examining the SCN and intends to avail of the settlement mechanism under SEBI (Settlement Proceedings) Regulations, 2018. |
Regarding financial implications, the notice states that a penalty, if any, may be imposed under Sections 15HA and 15HB of the SEBI Act, 1992. The quantum of penalties or claims is not ascertainable at this stage.
ISHAN Stock Price Movement
On Wednesday, Ishan International Limited shares closed flat at ₹0.45 per share after the stock registered zero change in trading. This price represents a significant decline, having hit the company's 52-week low with 96000 shares traded during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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