SEBI Clarifies Mandates: Noticees Directed to Pay Jointly and Severally Following Setco Automotive Corrigendum

SEBI Clarifies Mandates: Noticees Directed to Pay Jointly and Severally Following Setco Automotive Corrigendum​

SEBI Issues Corrigendum Order in Setco Automotive Matter​

The Securities and Exchange Board of India (SEBI) has issued a Corrigendum order regarding its previous directions concerning Setco Automotive Limited. The correction addresses typographical errors found in the original order, which was dated February 05, 2026. This corrective issuance clarifies the payment obligations of Noticee No. 3 and Noticee No. 4.

The Corrigendum, dated April 13, 2026, was released following representations submitted by Setco Automotive Limited (Noticee No. 1) and Setco Auto Systems Private Limited (Noticee No. 2). These representatives sought necessary corrections to the parameters outlined in the earlier directive.

Critical Updates to Payment Directives​

The key modification involves the payment mandates stipulated under paragraph 118(c) of the original order. SEBI has explicitly confirmed that Noticees No. 3 and Noticee No. 4 are jointly and severally directed to pay amounts to Noticees No. 1 and No. 2. This structure solidifies the recovery mechanism for the concerned parties.

The payment structure details specific amounts and interest calculation methods for four distinct heads of accounts. All directed payments are subject to the condition that any amount or interest already repaid must be deducted, provided proper proof of payment is furnished.

Breakdown of Joint and Several Liabilities​

The Corrigendum mandates several specific financial obligations distributed across the noticees. The payment structure clearly defines the amounts due to the primary noticees.

For Noticee No. 1, a total of ₹ 81.96 crore must be paid. This amount represents funds invested by Noticee No. 1 in SEPL, along with interest calculated at the rate of 23% per annum from the dates of investment.

Noticee No. 2 is mandated to receive payments from several sources, collectively totaling multiple amounts. Firstly, ₹ 107.76 crore is directed to be paid to Noticee No. 2, representing marketing commission received by SEPL, also carrying interest at 23% p.a. The noticee must also account for ₹ 13.07 crore invested in NCCRPS of SEPL, plus interest at 23% p.a.

Furthermore, Noticee No. 2 must remit an amount of ₹ 5.98 crore. This payment pertains to an advance made to TTPL, which carries interest calculated at 23% p.a. from the dates of the advance.

Continuation of Original Order’s Authority​

While the Corrigendum addresses typographical errors and clarifies payment directives, it does not supersede the original mandate. The order dated February 05, 2026, bearing reference number QJA/SS/CFID/CFID-SEC2/32034/2025-26, must continue to be read and understood alongside the details provided in this Corrigendum. This ensures that the full context and legal scope of the original ruling remain intact and fully binding.

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