SECURITIES AND EXCHANGE BOARD OF INDIA vs GAURAV VARSHNEY

The Supreme Court addressed the violation of Section 12(1B) of the Securities and Exchange Board of India Act, 1992, by Gaurav Varshney and Vinod Kumar Varshney, who incorporated M/s. Gaurav Agrigenetics Ltd. without obtaining the required registration for operating a collective investment scheme. The Court held that the respondents had indeed violated the provisions of the SEBI Act by commencing such a scheme immediately upon incorporation, thereby affirming the necessity of regulatory compliance for investor protection. The appeals were decided in favor of the Securities and Exchange Board of India, reinforcing the legal framework governing collective investment schemes.