Markets regulator Sebi has barred Elitecon International Ltd, its Promoter and Managing Director Vipin Sharma, and four others from accessing the securities market over alleged manipulative activities and misleading disclosures.
In an interim ex-parte order passed on Monday, Sebi directed the impounding of alleged unlawful gains of about ₹51.26 crore from Sharma and four other entities.
Additionally, the Securities and Exchange Board of India (Sebi) said it will conduct a detailed investigation into the case and appoint a forensic auditor.
2 March 2026
Get the latest issue of Outlook Business
The action follows a probe into trading in the scrip of Elitecon International, where the regulator found prima facie evidence that the company and its insiders misled investors by suppressing material information about its operations and financials, while simultaneously offloading shares at inflated prices.
Sebi alleged that the company suppressed material information to present a misleading picture of its financials and operations. It noted that while positive disclosures were made, certain adverse developments, including GST-related proceedings, were not adequately communicated to investors.
"Only a rosy picture w.r.t. the financials, functioning of the company was being presented to the outside world," Sebi said in its 82-page order.
The regulator added that such selective disclosures created positive market sentiment and induced investors to buy the stock, even as promoters and connected entities were offloading shares.
According to Sebi, the evidence prima facie revealed that material facts were suppressed "solely with an objective to sustain a positive market sentiment" while the notices were liquidating their shareholdings.
The regulator said such conduct points to a scheme aimed at artificially supporting the stock price and exploiting investor interest, raising concerns of market manipulation.
Accordingly, Sebi has restrained six entities from buying, selling or dealing in securities, directly or indirectly, until further orders. It has also directed freezing of bank and demat accounts of the concerned entities to the extent of the impounded amount.
Those restrained include promoter Vipin Sharma, along with non-promoter Pawan Kumar Ray and off-market transferees Gaurav Tyagi, Prabhakar Kumar and Sujit Chaturvedi.
The regulator has also directed the entities to disclose details of their assets and investments and ordered a forensic audit of the company's books to ascertain its true financial position.
Sebi said immediate intervention was necessary to prevent diversion of alleged unlawful gains and to safeguard investor interests.
