Description

SEBI has issued an interim ex-parte order restraining Elitecon International Limited and five associated individuals from buying, selling, or dealing in securities until further orders, following findings of price manipulation and misleading disclosures.

Summary

SEBI has issued an interim ex-parte order (No. WTM/KV/ISD/ISD-SEC-6/32325/2025-26, dated March 30, 2026) restraining Elitecon International Limited and five associated individuals from buying, selling, or dealing in securities in any manner, directly or indirectly, until further orders. NSE has communicated this order to all members via circular NSE/INVG/73535 dated April 01, 2026.

Key Points

  • Six entities are restrained from all securities trading until further SEBI orders
  • Entities with open derivative positions may close/square off within 3 months from the order date or at contract expiry, whichever is earlier
  • Settlement of pay-in/pay-out obligations for transactions executed before close of trading on March 30, 2026 is permitted
  • SEBI’s investigation covers manipulation of share capital, promoter shareholding changes, price and volume movement, delayed/non-disclosures, misleading disclosures, and observations on a manufacturing facility at Nashik
  • The full SEBI order is available on the SEBI website at http://www.sebi.gov.in
  • A consolidated list of all debarred entities is maintained on NSE’s website

Restrained Entities

Sr. No.NamePAN
1Vipin SharmaAIGPS3140M
2Elitecon International LimitedAAACK8902C
3Pawan Kumar RayAQFPR7415P
4Gaurav TyagiAGRPT6996P
5Prabhakar KumarARKPK4494M
6Sujit ChaturvediAWJPC1342A

Regulatory Changes

This is an interim ex-parte order issued under Sub-sections (1) and (4) of Section 11 and Sub-section (1) of Section 11B of the SEBI Act, 1992. The order is investigative in nature and imposes immediate trading restrictions pending a full hearing. SEBI’s findings include prima facie evidence of price manipulation, misleading corporate disclosures, delayed or non-disclosures, and suspicious buying interest driving price rises in the scrip.

Compliance Requirements

  • NSE Members: Must immediately ensure that the six restrained entities are blocked from placing any buy or sell orders in securities markets
  • Restrained Entities: Must not engage in any securities transactions directly or indirectly; may only close existing open derivative positions within 3 months or at expiry, whichever is earlier
  • Settlement: Pre-order transactions (before close of trading on March 30, 2026) may be settled normally
  • Members must refer to the NSE debarred entities list at https://www.nseindia.com/regulations/member-sebi-debarred-entities for ongoing compliance
  • Queries to be directed to dl-invsg-all@nse.co.in

Important Dates

  • March 30, 2026: Date of SEBI interim order (WTM/KV/ISD/ISD-SEC-6/32325/2025-26)
  • April 01, 2026: NSE circular issued to all members
  • Within 3 months of March 30, 2026 (by June 30, 2026): Deadline to close/square off any open derivative positions held by restrained entities

Impact Assessment

This order carries high market and regulatory impact. The complete restraint on securities trading for Elitecon International Limited and its key associated individuals signals serious prima facie findings by SEBI, including alleged price manipulation, misleading corporate disclosures, abnormal price and volume movements, and concerns about the authenticity of the company’s manufacturing operations at Nashik. Investors holding positions in Elitecon International Limited should be aware of the heightened regulatory scrutiny and associated risk. The order remains in force until SEBI issues further directions following a full adjudication process.

Impact Justification

SEBI has issued an interim restraining order against the company and key individuals for serious violations including alleged price manipulation, misleading disclosures, and non-disclosures. Trading restrictions are in effect until further orders.