On 17 March 2026 a two-judge bench of the Supreme Court (J.B. Pardiwala and K.V. Viswanathan JJ., judgment authored by Viswanathan J.) held that the use-of-proceeds objects disclosed by an issuer for a preferential issue are market-facing regulatory commitments under the SEBI (ICDR) Regulations 2009, and that post-allotment diversion of those proceeds constitutes fraud under the PFUTP Regulations 2003 — not curable by a subsequent shareholder ratification resolution or by an alteration of the Memorandum of Association. The Court separately confirmed that proceedings under sections 11 and 11B of the SEBI Act 1992 by the Whole-Time Member and adjudication under section 15HA by the Adjudicating Officer occupy distinct preventive and punitive spheres, and may be pursued in parallel.