Capital markets regulator SEBI has confirmed its directions against Par Drugs and Chemicals in connection with the proposed slump sale of its core business to a promoter-related entity, pending completion of investigation.
The regulator said observations made in the latest order are tentative in nature, pending detailed investigation.
In a confirmatory order passed on March 25, SEBI found that Par Drugs and Chemicals Ltd has failed to rebut prima facie findings recorded in the interim order.
“The detailed investigation in the matter is in progress and a comprehensive picture is expected to emerge after final findings. Hence, I am not inclined to modify the directions as stated in the interim order,” SEBI’s Whole Time Member Kamlesh Chandra Varshney said in the order.
“I, in exercise of the powers… hereby confirm the directions issued vide the interim order dated September 15, 2025,” he added.
The order has come into effect immediately and will remain operational until further directions, the regulator said.
In September 2025, SEBI barred API manufacturer PDCL from going ahead with the proposed slump sale of its core business to a promoter-related entity, citing prima facie irregularities in valuation, shareholder communication and voting process.
In the interim order, the regulator restrained the Vadodara-based Par Drugs and Chemicals Ltd (PDCL) from executing the business transfer agreement signed on February 14, 2025, with Phal-Jig Fine Chemicals Pvt Ltd (PJFCPL) for Rs 95 crore.
The buyer firm is part of PDCL’s promoter group, as per the order.
The Securities and Exchange Board of India (SEBI) had received a complaint alleging that a proposed slump sale of business by PDCL is not compliant with the applicable law and is prejudicial to the interests of the public shareholders.