Description

SEBI issues ex-parte interim order against Elitecon International Limited and five individuals for alleged price/volume manipulation, financial statement irregularities, misleading disclosures, and fraudulent trade practices during 2024-2026.

Summary

SEBI has issued an ex-parte interim order under Sections 11(1), 11(4), and 11B(1) of the SEBI Act, 1992 against Elitecon International Limited (formerly Kashiram Jain and Company Limited, incorporated December 15, 1987) and five associated individuals. The order follows an examination of the company’s scrip for the period August 26, 2024 to February 28, 2026, triggered by investor complaints and a BSE examination report dated July 18, 2025 covering alleged price manipulation from June 3, 2019 to January 24, 2025.

Key Points

  • Six noticees named: Vipin Sharma (AIGPS3140M), Elitecon International Limited (AAACK8902C), Pawan Kumar Ray (AQFPR7415P), Gaurav Tyagi (AGRPT6996P), Prabhakar Kumar (ARKPK4494M), and Sujit Chaturvedi (AWJPC1342A)
  • Allegations include financial statement irregularities and price/volume manipulation in Elitecon’s scrip
  • BSE submitted an examination report on July 18, 2025 flagging manipulation over a ~6-year period (June 2019 – January 2025)
  • SEBI examined changes in share capital, promoter shareholding, inter-connections among noticees, price/volume movements, and disclosure compliance
  • Delayed or non-disclosures and misleading disclosures by the company were specifically identified as violations
  • SEBI conducted observations on the company’s manufacturing facility at Nashik
  • Analysis of buying interest and price rise patterns was undertaken
  • Profits made by noticees have been computed as part of the order
  • Order passed on ex-parte basis given urgency and need to protect investor interest

Regulatory Changes

No new regulatory framework introduced. The order enforces existing provisions under:

  • SEBI Act, 1992 (Sections 11, 11B)
  • LODR Regulations, 2015 (Listing Obligations and Disclosure Requirements)
  • PFUTP Regulations, 2003 (Prohibition of Fraudulent and Unfair Trade Practices)

Compliance Requirements

  • Named noticees are directed to cease and desist from the violative activities as specified in Section F (Directions) of the order
  • Elitecon International Limited and associated individuals are subject to interim directions which may include trading restrictions and asset freezes pending further proceedings
  • Noticees are required to respond/appear before SEBI as part of the show-cause process following this interim order
  • The company must ensure accurate and timely disclosures going forward per LODR Regulations

Important Dates

  • December 15, 1987: Elitecon International Limited (formerly Kashiram Jain and Company Limited) incorporated
  • June 3, 2019 – January 24, 2025: Period covered by BSE’s examination report on price manipulation
  • July 18, 2025: BSE submitted examination report to SEBI
  • August 26, 2024 – February 28, 2026: SEBI’s examination period for the scrip
  • March 30, 2026: Date of this ex-parte interim order

Impact Assessment

This is a high-severity enforcement action with significant implications for investors and market integrity. The ex-parte nature of the order indicates SEBI found prima facie evidence serious enough to warrant immediate action without prior notice to the noticees. Investors holding Elitecon shares may face liquidity risk if trading restrictions are imposed. The order covers a multi-year manipulation scheme involving price/volume rigging, false disclosures about the manufacturing facility at Nashik, and misleading financial statements — all of which may have caused substantial investor harm. The computation of profits made by noticees signals potential disgorgement proceedings. Market participants should exercise caution with this scrip until the matter is resolved through formal adjudication.

Impact Justification

Ex-parte interim order by SEBI WTM against a listed company and its key persons for serious violations including price/volume manipulation, misleading disclosures, and financial irregularities; trading restrictions likely imposed on named noticees.