Cerebra Integrated Technologies Limited has provided a critical update regarding an appeal filed before the Securities Appellate Tribunal (SAT) in Mumbai, concerning an order issued by the Adjudicating Officer (CGM) on January 30, 2025. The Company had previously intimated the stock exchanges on March 20, 2025, regarding the appeal and the legal proceedings that followed.

Stay of Recovery of Penalty

The latest development in the legal matter pertains to the stay of the recovery of the penalty amount imposed by the Securities and Exchange Board of India (SEBI). As per the order received from the Securities Appellate Tribunal on April 29, 2025, the Tribunal has granted a stay on the penalty recovery, but the stay is subject to the deposit of 50% of the penalty amount by Cerebra Integrated Technologies.

The penalty had been levied by SEBI following certain regulatory concerns, and the Company appealed the order to the SAT. The stay on the penalty recovery offers a temporary relief to the Company, allowing it time to manage the financial and legal aspects of the situation.

Regulatory Compliance and SEBI Disclosure

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR), the Company is required to disclose any litigation or disputes that could materially impact its operations or financial condition. As such, the details of the litigation are being provided to the stock exchanges as part of the regulatory requirements.

The Annexure - A attached to the filing offers the full details of the litigation, including the name of the authority (Securities Appellate Tribunal, Mumbai), a brief description of the order passed, and the expected financial implications of the penalty.

Impact on Financial Position

At this stage, the Company has confirmed that there are no expected financial implications that would arise from compensation or penalties beyond the immediate penalty stay. The quantum of claims, if any, has also been noted as N/A (Not Applicable) for the time being.

Conclusion

Cerebra Integrated Technologies remains committed to resolving this matter in accordance with the law and is actively working with legal advisors to navigate through the appeal process. The Company appreciates the support of its investors and stakeholders during this period of legal proceedings.

The disclosure of this litigation aligns with the regulatory obligations under the SEBI LODR Regulations to maintain transparency with the stakeholders regarding any material developments.

For more information, the Company Secretary and Compliance Officer, Surbhi Jain, is available to address any inquiries.

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