The Securities and Exchange Board of India (SEBI) has settled an insider trading case against Yashish Dahiya, the Chairman & CEO of PB Fintech Limited, after the company opted for a settlement under the SEBI (Settlement Proceedings) Regulations, 2018. The settlement amount was Rs 9.42 lakh, bringing the regulatory scrutiny to a close.

Background of the Case

SEBI issued a Show Cause Notice (SCN) on April 5, 2024, which was received by PB Fintech on June 5, 2024. The notice was related to an alleged violation of Regulation 9A(2)(b) and Clause 4(1) of Schedule B of SEBI (Prohibition of Insider Trading) Regulations, 2015.

The alleged violation was linked to an investment made by PB Fintech’s wholly owned subsidiary, PB Fintech FZ-LLC, in Dubai, UAE. On November 16, 2022, the subsidiary invested USD 2 million in YKNP Marketing Management, UAE, acquiring a 26.72% stake. While this investment was approved by the Board of Directors and deemed non-material, it was duly disclosed to stock exchanges within the prescribed timeline.

SEBI’s Action and Settlement Process

SEBI initiated adjudication proceedings against Yashish Dahiya regarding compliance with insider trading regulations. However, instead of contesting the matter, PB Fintech and Dahiya applied for settlement without admission of guilt.

On March 4, 2025, SEBI issued a Settlement Order, formally concluding the case. The applicant paid Rs 9.42 lakh as a settlement amount, and the proceedings were disposed of under Section 15JB of the SEBI Act read with Regulation 23(1) of the Settlement Regulations.

Impact on PB Fintech and Financial Markets

PB Fintech clarified that the settlement does not have any material financial or operational impact on the company. With the regulatory compliance matter now closed, PB Fintech aims to focus on its business operations without legal distractions.

The case highlights SEBI’s stringent approach towards insider trading regulations while also demonstrating the regulator’s willingness to settle cases where procedural lapses occur but no fraudulent intent is established.

Conclusion

The PB Fintech SEBI case settlement serves as a reminder to companies about the importance of regulatory compliance in financial markets. SEBI continues to enforce its rules strictly while offering structured settlement mechanisms for resolving disputes.

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