JUDGMENT ( P er MS Sonak J) :-

1. Heard learned Counsel for the parties.

2. Rule. The Rule is made returnable immediately at the request of and with the consent of the learned Counsel for the parties.

3. The Petitioners challenge the show cause notice dated 20 August 2024 issued by the Securities and Exchange Board of India (“SEBI”) calling upon them to show cause why suitable directions should not be issued and/or penalty, as deemed fit, should not be imposed on them under Sections 11(1), 11(4), 11(4A), 11B(1), 11B(2) read with Section 15- HA of the Securities and Exchange Board of India Act, 1992 (“SEBI Act”) read with Rule 5 of Securities and Exchange Board of India (Procedure for holding Inquiry and Imposing Penalties) Rules, 1995. One of the noticees (Petitioner No. 5) was also called upon to show cause as to why a suitable penalty, as deemed fit, under Section 23A(a) read with Section 24 of Securities Contracts (Regulation) Act, 1956 read with Rule 5 of Securities Contracts (Regulation) (Procedure for Holding Inquiry and Imposing Penalties) Rules, 2005 be not imposed upon him.

PETITIONERS’ CONTENTIONS

4. The Petitioners challenge the impugned show cause notice mainly upon the foll