Before investing in a company, it is wise to check whether it faces regulatory actions, legal disputes or financial distress. Many corporate collapses showed public warning signs beforehand. Here are ten ways to check a company's regulatory and legal issues in India, as of October 2026.
The list
1. SEBI orders. SEBI publishes its orders, including penalties, bans and settlements, on its website. Search for the company and its promoters by name.
2. Stock exchange announcements. Listed companies must disclose material legal and regulatory events to the NSE and BSE. Check recent corporate announcements for orders, notices and disputes.
3. Exchange surveillance lists. The exchanges place some shares under additional surveillance measures or special trading segments, often a sign of unusual activity or other concerns.
4. The MCA portal. The Ministry of Corporate Affairs shows a company's status (active, struck off and so on), its directors and registered charges (loans secured against assets).
5. NCLT and insolvency information. Insolvency proceedings under the Insolvency and Bankruptcy Code are heard by the National Company Law Tribunal, and public announcements about insolvency are published by the Insolvency and Bankruptcy Board of India.
6. Credit rating agencies. Ratings and rating actions from agencies such as CRISIL, ICRA, CARE and India Ratings show a company's debt-servicing strength. Downgrades or "issuer not cooperating" notices are warning signs.
7. Auditor reports. In the annual report, look for qualified opinions, emphasis of matter paragraphs and any auditor resignation and its stated reasons.
8. Shareholding pattern and pledges. Quarterly filings show how much promoter holding is pledged. High or rising pledging can lead to forced selling.
9. Court records. The eCourts services and high court websites can show significant litigation involving a company.
10. PositoAI red flags. PositoAI tracks serious regulatory actions against listed companies across 7 major markets, along with promoter pledge warnings, and shows them as red flags on company pages, free and without sign-up.
Global companies
For companies listed abroad, regulators publish their own records. In the US, the Securities and Exchange Commission's EDGAR database holds filings and its enforcement actions are published online. Other countries' regulators provide similar information.
How to judge what you find
Not every legal matter is serious. Large companies often face routine disputes. Focus on issues involving fraud, misstatement of accounts, market manipulation, defaults or insolvency, and on patterns, such as repeated penalties, rather than single minor events. Read the actual order or filing rather than relying on headlines.
An example of putting it together
You are considering a small listed company. PositoAI shows a recent SEBI order on its page. You read the order on SEBI's website and find it concerns delayed disclosures, with a monetary penalty. The exchange announcements show the auditor resigned last quarter, and the shareholding pattern shows most promoter shares are pledged. Each item alone might be explainable; together they form a pattern that strongly suggests caution.
A simple routine
Before investing: check red flags on PositoAI, recent exchange announcements, SEBI orders, the auditor's report and promoter pledges. Repeat at least once a year for companies you own.
Frequently asked questions
Where can I find SEBI orders?
On SEBI's website, searchable by name.
What does a rating downgrade mean?
The agency sees higher risk of the company not repaying debt on time.
Is promoter pledging always bad?
Not always, but high or rising pledging is a risk.
What is the NCLT?
The tribunal that handles company law matters, including insolvency.
How to use this with PositoAI
Browse recent warnings on Red Flags and check any company page for active red flags. Read our guide to red flags.
Summary
Ten ways to check a company's regulatory issues: SEBI orders, exchange announcements, surveillance lists, the MCA portal, NCLT and insolvency notices, credit ratings, auditor reports, promoter pledges, court records and PositoAI red flags. Focus on serious issues and patterns, read original documents, and recheck companies you own regularly.