Summary of this article
Sebi has banned 39 entities, including promoters on stock manipulation case
RRP Semiconductor stocks were found to be manipulated, as per Sebi probe
The Securities and Exchange Board of India (Sebi) has banned around 39 entities from the securities market, which were connected to alleged stock manipulation in shares of RRP Semiconductor. The market regulator passed an interim order against these entities, which include promoters and intermediaries, after an extraordinary surge of 725 times the company’s stock price in over 19 months.
The regulator has imposed trading restrictions on the named parties, which include three promoters and other associated entities, directing the depositories to freeze shares in their individual demat accounts. It also directed an impounding of nearly Rs. 2 crore in alleged unlawful gains.
Sebi noted that shares of RRP Semiconductor had skyrocketed to Rs. 10,887 on October 31, 2025, from just Rs. 15 on April 2, 2024, which led to a preliminary investigation. Sebi’s probe found prima facie evidence indicating the involvement of multiple entities in the price manipulation of the company’s shares between April 2024 and October 2025.
The investigation noted a pattern of coordinated activity within the entities, such as off-market transactions, fund transfers, and communications shared among them. Sebi pointed out that such interconnected trading behaviour suggested a deliberate attempt to influence the price of the stock and was inconsistent with independent market activity. There was also a disconnect between the surging stock price and the company’s deteriorating earnings. The lack of any fundamental justification for the rise in the share price of the company reinforced the regulator’s suspicions of manipulation.
“The preliminary examination found that the preferential allottees, promoters/directors of RRP (Ms. Ira Mishra, Ms. Sumita Mishra and Mr. Ramesh Mishra) along-with the top 3 LTP contributors (Multiplier, Neo and Pace) and the individuals responsible for taking trading decisions on their behalf (Mr. Chetan Rasiklal Shah, Mr. Bhavin Y Mehta, Mr. Nikhil Gupta and Mr. Atul Goel) have prima facie violated clauses (a), (b), (c) of Section 12A of SEBI Act, clauses (a), (b), (c) and (d) of regulation 3, sub-regulation (1) of regulation 4, and clauses (a) and (e) of sub-regulation (2) of regulation 4 of PFUTP Regulations,” noted Sebi’s Whole Time Member Amarjeet Singh in the interim order.
“Banks where the said entities are holding bank accounts are directed that debits in their accounts shall be permitted only in excess of the amount(s) impounded,” it added. Sebi has given the entities 21 days to respond to the order and file their replies or objections.
