SEBI issues recovery notice to Oriental Trimex's Vivek Seth
SEBI has issued a notice of demand under a recovery certificate to Vivek Seth, a director named in its February 2026 order on Oriental Trimex Limited's financial statements.
The Enforcement Action
SEBI has issued a Notice of Demand under Recovery Certificate No. 9217 of 2026, dated 14 July 2026, to Mr Vivek Seth (PAN AACPS3800Q), naming him a defaulter in the matter of Oriental Trimex Limited. The notice is a step to recover a monetary penalty that SEBI says remains unpaid.
The penalty stems from a SEBI adjudication order dated 18 February 2026, in which Adjudicating Officer Amit Kapoor imposed ₹5,00,000 on Mr Seth, a director associated with the company, under Section 15HB of the SEBI Act for a breach of the Listing Obligations and Disclosure Requirements (LODR) Regulations. That order (No. Order/AK/GN/2025-26/32129-32138) imposed penalties aggregating about ₹1.35 crore across nine noticees, including Oriental Trimex Limited itself (₹50 lakh) and its promoters Rajesh Punia and Savita Punia (₹50 lakh, jointly and severally).
The noticees were required to pay within 45 days of receiving the order. Where such a penalty is not paid, SEBI may, under Section 28A of the SEBI Act, recover it through attachment and sale of a defaulter's movable and immovable property. The 14 July notice of demand forms part of that recovery process.
Background
The action follows a SEBI investigation into the financial statements of Oriental Trimex Limited, a listed marble and granite company, covering the period 1 April 2017 to 31 March 2020. SEBI examined whether the accounts had been misstated in violation of the PFUTP Regulations and the LODR Regulations, and a show-cause notice in the matter was issued on 29 April 2025.
In the 18 February 2026 order, the Adjudicating Officer found that certain entities had aided and abetted the company in "a scheme of inflation of purchase and sales", with two connected concerns, Mirage Marble Private Limited and Nirmal Marble Limited, said to have provided fictitious purchase and sales entries to the company. The order also observed that the noticees had "attempted to mislead the instant proceedings by producing fake documents".
Mr Seth's ₹5 lakh penalty was imposed specifically for a LODR breach, rather than under the fraud provisions applied to some other noticees. The penalties became recoverable once the 45-day payment window lapsed, and the 14 July notice indicates that the sum due from Mr Seth had not been settled within that time.
What It Means
A recovery certificate and a notice of demand are collection tools, not fresh findings of wrongdoing. They signal that a penalty already imposed has not been paid, and that SEBI is invoking its Section 28A powers, which can extend to attaching bank accounts, demat holdings and other assets of the named defaulter.
For ordinary investors, the practical point is verification. Anyone can read SEBI's orders and recovery notices free of charge in the "Enforcement" section of sebi.gov.in, which lists them by month and sets out the parties, the regulations cited and the penalties imposed. Before relying on a company's reported numbers, it is worth checking whether its promoters or directors feature in any SEBI order.
The matter also illustrates how financial-statement manipulation is alleged to work: inflating sales and purchases through related or connected entities to flatter the accounts. Retail shareholders rarely see such arrangements directly, which is why audited financials and any regulatory action against a company's management are worth reviewing before investing.
FAQ
What exactly did SEBI order?
SEBI issued a notice of demand under Recovery Certificate No. 9217 of 2026, dated 14 July 2026, to Vivek Seth, seeking payment of an outstanding penalty. The ₹5 lakh penalty was imposed by SEBI's adjudication order of 18 February 2026 for a breach of the LODR Regulations connected to Oriental Trimex Limited's financial statements.
Does this mean the people named are guilty?
No. A SEBI adjudication order is a civil finding by an adjudicating officer, and a recovery notice is a collection step, not a criminal conviction. Those named retain the right to due process, including appeal. Guilt in a criminal sense is determined only by a court after trial.
Can the order be appealed?
Yes. A person aggrieved by a SEBI adjudication order may appeal to the Securities Appellate Tribunal (SAT) within the prescribed period, and thereafter to the Supreme Court on a question of law. Filing an appeal does not automatically halt recovery unless the tribunal grants a stay.
Where can I read the official documents?
The recovery notice and the underlying 18 February 2026 adjudication order are both available on sebi.gov.in and are linked in this report. The order sets out the noticees, the investigation period, the regulations cited and the penalties,.
This report is based on SEBI's Notice of Demand under Recovery Certificate No. 9217 of 2026 dated 14 July 2026 and the underlying SEBI adjudication order dated 18 February 2026, both on the SEBI website.