Agency, New Delhi. Questioning the transparency of senior corporate officers, the Delhi High Court has expressed serious concern over a possible end spot in SEBI's disclosure rules. The remarks came during the hearing of a case involving CFO Nitika Suryavanshi, where a petition was filed over her alleged non-disclosure of pending criminal cases and abnormal fluctuations in the company's shares. At present, Nitika Suryavanshi has just been granted bail in criminal cases.
Court's strict comment: Why is the information of investors incomplete?
In the order dated January 2, 2026, the court asked Sebi whether the existing rules give senior executives the freedom to conceal their prior legal or professional history from investors. The court clearly said that this is against the basic spirit of investor protection.
Questions on volatility in shares and role of CFO Nitika Suryavanshi
According to the petition, sharp and unusual fluctuations were observed in the company's shares during the tenure of CFO Nitika Suryavanshi between 2019 and 2025. Although the court did not make direct allegations of market manipulation, it described this pattern as worrying.
Pending criminal and professional complaints
The court was told that criminal cases under IPC and professional complaints with ICAI are pending against CFO Nitika Suryavanshi, which were allegedly neither disclosed to investors at the time of appointment nor subsequently.
Questions raised on SEBI rules
The High Court indicated that the requirement to disclose only the current tenure matters in the SEBI (LODR) Rules could be a serious regulatory deficiency. The court said, investor protection cannot be sacrificed for technical flaws.
Instructions to SEBI, focus on accountability of CFO Nitika Suryavanshi
The court has directed SEBI to consider trading patterns, the role of the CFO and stricter disclosure standards for senior executives. According to experts, this case could become not just a review of the rules but also the personal credibility of CFO Neetika Suryavanshi and the corporate governance standards in India.
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