RITESH AGARWAL vs SECURITIES & EXCHANGE BOARD OF INDIA&ORS

The Supreme Court upheld the order of the Securities and Exchange Board of India (SEBI) under Section 11B of the SEBI Act, which directed Ritesh Polysters Ltd. and its promoters to disassociate from capital market activities for ten years due to fraudulent practices during a public issue. The Court found that the promoters had only subscribed a fraction of the required investment and engaged in irregularities, constituting a hoax against investors. The Court affirmed the remedial measures including the buyback of shares at specified rates, ensuring investor protection.