Unistone Capital and Mr. Jitendra Sanghavi Pay ₹34 Lakhs and ₹32 Lakhs to SEBI in Cupid Limited Settlement Order
SEBI Finalizes Settlement for Alleged Violations by Applicants in Cupid Limited Case
The Securities and Exchange Board of India (SEBI) has issued a formal Settlement Order on June 16, 2026, bringing an adjudication proceeding against two applicants—Unistone Capital Private Limited and Mr. Jitendra Sanghavi—to a conclusion. The order addresses alleged violations concerning their trading practices in the scrip of Cupid Limited.SEBI initiated these proceedings under the SEBI Act, 1992, after a Show Cause Notice (SCN) was issued to both applicants on June 13, 2025. The initial allegations focused on discrepancies regarding intra-day trades and required pre-clearance during the investigation period.
Details of Alleged Trading Violations
The adjudication process detailed alleged failures by the applicants to adhere to specific regulations. Applicant 1 (Unistone Capital Private Limited) was cited for violations related to Para B (5) of the 'Unistone Code of Conduct' and Schedule C, regarding contra trades executed within a six-month window.Applicant 2 (Mr. Jitendra Sanghavi) faced allegations concerning Regulation 9 of the PIT Regulations, 2015, as well as breaches of the 'Unistone Code of Conduct' pertaining to pre-clearance requirements for buy/sell trades in Cupid Ltd.
The Negotiation and Approval Process
Following the issuance of the SCN, both applicants formally proposed to settle the ongoing proceedings without admitting or denying the facts and conclusions of law. They filed settlement applications with SEBI on July 16, 2025.The case proceeded through multiple review stages. After meetings with the Internal Committee (IC) of SEBI on September 18, 2025, applicants provided indicative settlement amounts via email communications in September and November 2025. These were subsequently revised.
HPAC Recommendation and Final Payment
The High Powered Advisory Committee (HPAC) reviewed the proposed settlement terms in its meeting on March 25, 2026. The committee recommended that Applicant 1 pay ₹34,84,000/- (Rupees Thirty Four Lakh and Eighty Four Thousand only), and Applicant 2 be required to settle for ₹32,50,000/- (Rupees Thirty Two Lakh and Fifty Thousand only).The Board of SEBI approved this HPAC recommendation on May 13, 2026. The final settlement amounts were communicated to the applicants by SEBI on May 19, 2026.
Settlement Achieved: Proceedings Disposed Of
Crucially, both applicants credited the required settlement amounts to SEBI on June 02, 2026. In view of this compliance and the acceptance of the terms, the adjudication proceedings initiated via the SCN dated June 13, 2025 have been officially disposed of under Section 15JB of the SEBI Act.The Settlement Order, which is effective immediately, confirms the conclusion of the matter. However, SEBI retains the right to take enforcement actions if it later comes to light that the applicants failed to make full and true disclosure or violated any undertakings specified in the settlement order.
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