Advik Capital Limited has received a favorable outcome from the Securities and Exchange Board of India (SEBI) regarding a regulatory matter. The company announced on December 20 that SEBI has issued an adjudication order confirming no adverse action against the firm.

SEBI Adjudication Order Details

SEBI issued Adjudication Order No. Order/AK/GN/2025-26/31848-31890 dated December 19, following its investigation into certain trading transactions. The order explicitly confirms that no adverse findings, directions, or penalties have been imposed on Advik Capital, its promoter, or associated persons.

The matter originated from a Show Cause Notice (SCN) dated February 13, which the company had previously disclosed to the exchanges on February 18. The notice pertained to certain trading transactions in equity shares of another BSE-listed company, undertaken by Advik Capital, its promoter, and certain other associated persons.

Company's Response to Misleading Communications

Advik Capital has expressed concern about unauthorized and misleading communications that have been circulated regarding the SEBI matter. The company stated that certain persons, apparently acting with malafide intent, have distributed communications that selectively emphasize the issuance of the Show Cause Notice while ignoring the actual outcome.

According to the company's disclosure, these communications have:

• Falsely portrayed the company as being under scrutiny regarding its businesses and governance
• Been intended to damage the company's reputation
• Aimed to mislead investors and influence public perception

Impact Assessment

The company has confirmed that there is no impact on its financial, operational, or other activities as a result of the SEBI order. This assessment is based on the fact that no adverse findings, directions, or penalties were imposed on Advik Capital, its promoter, or associated persons.

Stakeholder Advisory

Advik Capital has strongly urged all stakeholders to disregard any unverified or unauthorized communications related to this matter. The company emphasized that stakeholders should rely solely on official disclosures for accurate and complete information about the company's regulatory status and business operations.

The complete SEBI adjudication order is available on the SEBI website for public review, providing transparency regarding the regulatory authority's final decision on the matter.

Elitecon International Limited has categorically denied loan allegations made by Advik Capital Limited in a ₹71.15 crore recovery case, calling the claims "false, baseless and unsupported by genuine records." The company disclosed through BSE filing that it believes the documents relied upon by Advik Capital appear to be fabricated and unauthorized.

Court Proceedings and Interim Order

The Delhi High Court passed an interim order on December 10, 2025, in O.M.P.(I)(COMM.) No. 505/2025 titled M/s Advik Capital Limited vs. Elitecon International Limited & Ors. The court's findings were based on Advik Capital's petition under Section 9 of the Arbitration and Conciliation Act, 1996:

Loan Agreement Details and Allegations

According to Advik Capital's petition, a loan agreement dated August 12, 2024, was executed between the parties. The financial breakdown presented to the court includes:

Advik Capital sent a loan recall notice dated September 28, 2025, demanding payment of the full amount including accrued interest. The petitioner also obtained a forensic audit report dated November 10, 2025, claiming to verify signatures on the loan agreement.

Elitecon's Official Response and Denial

In its regulatory disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015, Elitecon International strongly contested the allegations. The company's position includes:

• Complete Denial: Categorically denies the existence of any loan transaction with Advik Capital
• Document Authenticity: Claims documents relied upon by petitioner appear fabricated and created without company's knowledge or consent
• Legal Defense: Possesses complete documentary evidence to be placed before the court
• Business Continuity: Normal business activities and day-to-day operations continue unaffected

Market Context and Additional Factors

The court noted several concerning developments regarding Elitecon International's financial position:

Current Status and Next Steps

The interim order restrains Elitecon International from creating third-party rights in movable and immovable assets except in the ordinary course of business. The company has committed to filing its detailed reply within court-prescribed timelines and taking all appropriate legal steps to contest the allegations.

Elitecon International advised shareholders and market participants to rely solely on disclosures made through recognized stock exchanges and disregard unauthorized or speculative information from other sources. The matter remains pending before the Delhi High Court for final adjudication, with the next hearing scheduled for February 11, 2026.