Sebi Cracks Down on Elitecon International's Market Manipulation Scheme

Sebi has barred Elitecon International Ltd, its MD Vipin Sharma, and four others from the securities market over alleged manipulative activities. The regulator's investigation points to misleading disclosures and market manipulation. A forensic audit will assess the company's financials, while bank accounts and shares are frozen to prevent unlawful gains.

The Securities and Exchange Board of India (Sebi) has issued a ban against Elitecon International Ltd and five individuals, including its Managing Director Vipin Sharma, following allegations of market manipulation and misleading disclosures.

In an interim order, Sebi impounded approximately Rs 51.26 crore of alleged unlawful gains and announced plans for a detailed investigation, including the appointment of a forensic auditor. The decision arose from a probe into Elitecon International's trading activities, revealing prima facie evidence of investor misinformation and inflated share prices.

Sebi highlighted that Elitecon International misled investors by suppressing significant negative developments, such as GST-related proceedings, while releasing only positive financial disclosures. Such actions, according to Sebi, manipulated market sentiment and exploited investor interests. Sebi has frozen the bank and demat accounts of those involved pending further investigation.