KAIROSOFT AI SOLUTIONS LIMITED & ANR. vs SECURITIES AND EXCHANGE BOARD OF INDIA & ORS.

Judgment text excerpt

$~66 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment Delivered on: 09.06.2025 + W.P.(C) 4633/2025 & CM APPL. 21406/2025 KAIROSOFT AI SOLUTIONS LIMITED & ANR......Petitioners Through: Mr. Kapil Sibal, Sr. Adv. with Mr. Karan Luthra, Mr. Rishi Agrawala, Ms. Aarushi Tiku, Mr. Rishabh Parekh, Mr. Daksh Arora and Mr. Rohan Dua, Advs. versus SECURITIES AND EXCHANGE BOARD OF INDIA & ORS. .....Respondents Through: Mr. Neeraj Malhotra, Sr. Adv. along with Mr. O.P. Faizi, Mr. Nimish Kumar, Mr. Rahul Malik, Ms. Shivangi Shokeen, Mr. Ashish Aggarwal, Mr. Himanshu Singh and Ms. Smriti Ahluwalia, Advs. for SEBI. Mr. Pratap Venugopal, Sr. Advocate with Ms. Surekha Raman and Mr. Sidharth Nair, Advs. for R-2. Mr. Ripudaman Bhardwaj, CGSC with Mr. Amit Kumar Rana, Adv for R/UOI. CORAM: HON'BLE MR. JUSTICE VIKAS MAHAJAN JUDGMENT VIKAS MAHAJAN, J 1. The present petition has been filed by the petitioners feeling aggrieved by the impugned notices dated 03.04.2025 and 04.04.2025 published by the Signature Not Verified W.P.(C)No.4633/2025 Page 1 of 29 Digitally Signed By:ARUNA KANWAR Signing Date:10.06.2025 13:49:48 respondent no.2/BSE on its website whereby surveillance actions have been taken against shares of the petitioner no.1 company (hereinafter, the „Company‟). The challenge is also laid to the „General Administrative Circular‟ dated 24.02.2023 issued by respondent no.2/BSE. 2. The case set out in the petition is that on 23.02.2017 respondent no.2/BSE introduced the „Graded Surveillance Measure‟ (for short, „GSM‟) Framework in consultation with respondent no.1/SEBI, whereby it was provided that if it is noticed that any securities witness abnormal price rise not commensurate with financial health of the company & fundamentals like Earnings, Book Value, Net worth etc., the securiti