This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Zuari Agro Chemicals Ltd and four senior officials settled adjudication proceedings with India's Securities and Exchange Board (SEBI) in 2025 for a total of approximately Rs 2.91 crore (~$350K) over alleged financial misstatements, improper accounting treatment, and failure to obtain mandatory approvals for related-party transactions. The company agreed to voluntarily refrain from securities trading for three months. Former MD/CEO Sunil Sethy and ex-CFO RK Gupta face a four-month voluntary debarment from the securities market. The enforcement action followed SEBI's investigation into violations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the SEBI Act 1992, and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations 2003. SEBI issued its show-cause notice in January 2025 and disposed of proceedings after confirming receipt of settlement amounts.
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The Naughty List
A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.