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Informist, Thursday, Jul. 9, 2026

MUMBAI – The Securities and Exchange Board of India Thursday passed an interim order restraining the promoter-cum-managing director, chief executive officer, and 17 entities, of Osiajee Texfab Ltd. from dealing in securities of the company over allegations of share price manipulation. SEBI also directed stockbroker Shreni Shares, one of the entities that was allegedly involved in the manipulation, to disgorge wrongful gains of INR 8.26 million.

SEBI alleged that the management of Osiajee, Shreni Shares, and other entities connected to the company's management were involved in a fraudulent scheme to artificially inflate the price of Osiajee's shares.

The market regulator raised concerns regarding the independence of the broker's trading activity in the scrip, as Akashdeep Jain, a branch manager in Shreni Shares, was the husband of Osiajee Texfeb's Managing Director Reema Saroya. The regulator also noted that the broker was unable to provide evidence of order placement for trades by clients that substantially influenced the share price of Osiajee Texfeb.

The investigation stems from a complaint received by the regulator regarding the alleged involvement of Osiajee Texfab's directors and key managerial personnel in manipulating the share price of the company's stock with the help from stock brokers. Upon investigation, SEBI noted that the top 10 persons who contributed to the last traded price of the scrip had a positive contribution of INR 1,411.15 during Apr. 30 to May 14, which was over 67% of total market positive last traded price. The regulator also noted the six of these 10 people had 50% trading concentration and one other notice had 95% trading concentration. The regulator also noted that the 10 people were trading through their trading accounts held with Hoshiarpur branch of Shreni Shares, where Akashdeep was branch manager.

The regulator noted the company had made misleading announcements regarding the growth of its textile business. Despite most of Osiajee Texfab's revenue coming from a wholly-owned subsidiary engaged in farming of eucalyptus and poplar trees, and standalone revenue being negligible, the company made disclosures such as "...the textile business of the Company is growing steadily with improved operational performance and business expansion..." and that "... The company is expanding its reach through modern trade and e-commerce..."

SEBI visited the registered office of Osiajee Texfab in Punjab, SEBI noticed that it was the residential premises of Reema Saroya and Akashdeep Jain. It was also the address of Shreni Shares' Hoshiarpur branch. SEBI had found that the offices of Osiajee Texfab and Shreni Shares were in adjacent rooms that were connected internally.

During the visit, Saroya admitted that there are no operations of Osiajee Texfab's textile business and its revenue was driven by its agricultural arm. She also admitted that Akashdeep took decisions for her role and assisted her functions in the organisation. She also admitted that none of the directors of Osiajee Texfab's had taken any salary from the company since it had no revenue. Further, SEBI noted that the company purchased a total of three pieces of land from two people who were alleged to be involved in the share manipulation scheme.

During SEBI's visit to Shreni Shares' head office in Mumbai, the regulator noted that despite the broker having a call recording system for all trades executed at the head office and all its branches, including the Hoshiarpur branch, it did not have call recording for trades placed in Osiajee Texfab's shares.

SEBI, in its ex-parte interim order, detailed a network of fund transfers involving company insiders, their family members, top traders and related entities, in the share manipulation scheme that helped drive the company's shares to INR 475 in January from INR 50 in January 2025. It also identified 516 synchronised trades worth INR 39.20 million. In most instances, the buy and sell order prices matched, which SEBI said indicated a high degree of coordination.

As a result of the share manipulation scheme, Shreni Shares had accumulated more than 1% shareholding in Osiajee Texfab, SEBI said. Within seven days of SEBI inspecting the broker's office, it sold the entire holding, allegedly earning wrongful gains of INR 8.26 million.

Thursday, shares of Osiajee Texfab closed 3.2% higher at INR 397.50 on the BSE.  End

Reported by Prateem Rohanekar

Edited by Deepshikha Bhardwaj

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