Description

SEBI debarred Droneacharya Aerial Innovations Limited and 9 other entities from securities market for 1-2 years for fraudulent scheme, mis-representation of financials, and IPO proceeds mis-utilization.

Summary

SEBI has issued an order under Sections 11(1), 11(4), 11B(1), 11B(2) read with Sections 15A(b), 15HA and 15EB of the SEBI Act, 1992, debarring Droneacharya Aerial Innovations Limited and 9 other entities from buying, selling or dealing in securities directly or indirectly, or being associated with the securities market in any manner for periods ranging from 1 to 2 years. The order pertains to fraudulent scheme, mis-representation of financial statements, mis-utilization of IPO proceeds, non-disclosure of related party transactions, and incorrect shareholding disclosures.

Key Points

  • Droneacharya Aerial Innovations Limited debarred for 2 years from securities market
  • Mr. Prateek Srivastava (Director) debarred for 2 years
  • Ms. Nikita Srivastava debarred for 2 years
  • Instafin Financial Advisors LLP debarred for 2 years
  • Mr. Sandeep Ghate debarred for 2 years
  • Micro Infratech Pvt. Ltd. debarred for 1 year
  • Additional entities: Mr. Kishan R Verma, Mr. Harshal Kher, Corporate Capital Ventures Private Ltd., and Ms. Mukula Joshi also covered under the order
  • Violations include fraudulent scheme, financial statement mis-representation, IPO proceeds mis-utilization, non-disclosure of software quotation in prospectus, incorrect deviation disclosures, undisclosed related party transactions, and incorrect shareholding disclosures
  • Entities with open derivative positions allowed to close positions within 3 months or at contract expiry, whichever is earlier

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action under existing SEBI regulations.

Compliance Requirements

  • NSE members must take note of the debarred entities and ensure compliance
  • Members should not facilitate trading or dealings in securities by the debarred entities during the restraint period
  • Debarred entities prohibited from buying, selling or dealing in securities directly or indirectly
  • Debarred entities prohibited from being associated with securities market in any manner during restraint period
  • Existing open derivative positions must be closed within 3 months from order date or at contract expiry, whichever is earlier
  • Consolidated list of debarred entities available on NSE website for member reference

Important Dates

  • Order Date: November 28, 2025
  • Restraint Period Start: November 28, 2025
  • Restraint Period End (2-year debarment): November 27, 2027
  • Restraint Period End (1-year debarment): November 27, 2026
  • Derivative Position Closure Deadline: February 28, 2026 (3 months from order date) or contract expiry, whichever is earlier

Impact Assessment

Market Impact: High - This enforcement action against a listed company and its promoters/related entities sends a strong signal about SEBI’s strict stance on fraudulent activities, financial misrepresentation, and IPO proceeds misuse. The debarment of the company itself for 2 years effectively freezes its ability to raise capital or conduct securities transactions.

Operational Impact: The company and debarred individuals/entities face severe restrictions on securities market participation for 1-2 years, significantly impacting business operations, capital raising abilities, and market credibility.

Investor Impact: Existing shareholders of Droneacharya Aerial Innovations Limited may face liquidity concerns and valuation impact. The order highlights serious governance and compliance failures that investors should consider.

Regulatory Precedent: The order demonstrates comprehensive enforcement covering multiple violation categories - fraudulent scheme design, financial statement manipulation, IPO proceeds misuse, and disclosure failures - providing clear deterrent against such multi-faceted violations.

Impact Justification

Major enforcement action involving multi-year debarment of a listed company and multiple entities for serious violations including fraud, financial misrepresentation, and IPO proceeds misuse