SEBI v. Cerebra Integrated Technology Limited and others (misstated financial statements, 2025)

Judgment entered

✓ Checked against the primary document on October 8, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

Report an error in this record (sebi-91374-misleading-issuer-disclosure-2025) by email

In January 2025 a SEBI chief general manager found that Cerebra Integrated Technology Limited and four of its directors and officers had misstated its financial statements. The order restrained the company for 5 years, the managing and whole-time directors for 3 years and two chief financial officers for 1 year, with penalties totalling Rs 62,00,000.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

—

Total relief

—

Alleged gain

—

Penalty as published

6.2m INR

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in INR. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

SEBI chief general manager G. Ramar issued the order on 30 January 2025. The noticees were Cerebra Integrated Technology Limited, a Bengaluru technology company, its managing director Ranganathan Venkatraman, whole-time director Vishwamurthy Phalanetra, and Kishan S Rao and H S Venkatesh, who the order treats as chief financial officers.

SEBI's investigation began from an NSE examination report. It was alleged that the company and its directors misrepresented the financial statements, misappropriated funds, inflated sales and purchase figures and failed to obtain audit committee or shareholder approval for related party transactions, and that the senior officers failed in their duty of care over the accounts.

The order finds the allegations of misstated accounts and related breaches of the fraud and unfair trade practice regulations and the listing regulations established against the five noticees to varying degrees, reflected in the length of their restraints. The detailed accounting findings are in the body of the order and are not reproduced here.

The company was restrained from the securities market for 5 years, Mr Venkatraman and Mr Phalanetra for 3 years, and Mr Rao and Mr Venkatesh for 1 year, with the first two also barred from director or key managerial posts in other listed companies for 1 year. Penalties under sections 15A(a), 15HA and 15HB were Rs 20,00,000 on the company, Rs 15,00,000 each on the two directors and Rs 6,00,000 each on the two officers, Rs 62,00,000 in all. The order warns of prosecution for non-compliance.

The record does not show whether the order was appealed, whether the penalties were paid, how much money was found to have been misappropriated, or any criminal case. The matter concerns published accounts and company funds, not a trading scheme.

This library tags the matter as misleading issuer disclosure. The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Misleading issuer disclosure — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2025-01-30 SEBI order

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEBI order
• Order (PDF)

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added October 8, 2026. submit a correction.