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Informist, Friday, Aug 23, 2024

--SEBI passes interim order against Debock Ind, 3 associates

--SEBI orders Debock promoters, associates to disgorge 892 mln rupees

--SEBI bars Debock Ind from accessing capital mkt, dealing in shares

--SEBI orders Debock to "bring back" siphoned off rights issue funds

MUMBAI – The Securities and Exchange Board of India today passed an interim order against Debock Industries Ltd, promoter and Chairman and Managing Director Mukesh Singh, his wife, and promoter-linked person for siphoning off funds, financial misrepresentation, and fabricating bank statement. The market regulator ordered Mukesh Singh to disgorge unlawful gains of 375.8 mln rupees, his wife Priyanka Sharma to disgorge 140 mln rupees, and Sunil Kalot to disgorge 376.7 mln rupees.

SEBI said in the order that the actions of the company and the promoters prima facie revealed brazen defrauding of investors and deceiving regulatory authorities. The market regulator barred the company and the three individuals from accessing capital market and dealing in securities till further orders. It also directed the company and the managing director to "bring back" diverted rights issue funds of 355 mln rupees. This is apart from the 140 mln rupees of rights issue funds that were diverted to Singh's wife and who has been separately ordered to disgorge that amount.

In the interim order, SEBI also directed the National Stock Exchange not to grant approval for a scheme of amalgamation of Debock Ventures with Debock Industries. 

Debock Industries, whose official line of business is trading in agricultural equipment, hospitality services, and mining, was initially listed on NSE's innovators growth platform in June 2018, and subsequently migrated to the main board of the exchange in March 2022. Before SEBI initiated a probe, NSE had examined the company's financials and noted that a spike in the revenue in 2021-22 (Apr-Mar) and 2022-23, during when the company came out with a rights issue and a bonus issue.

NSE also noted that around 75% of sales, and 95% of purchases, stated by the company in its 2021-22 and 2022-23 financials were transactions with related or linked entities. The SEBI conducted a detailed probe and noticed the same egregious transactions along with other problems.

Today, shares of the company closed 0.3% higher at 7.14 rupees on the National Stock Exchange.  End

Reported by Rajesh Gajra

Edited by Deepshikha Bhardwaj

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