SEBI Accuses Debock Industries of Defrauding Investors

SEBI has accused Debock Industries Limited, a company listed on the NSE, of defrauding investors and deceiving regulatory authorities. The company allegedly inflated its financials and siphoned off funds. SEBI has imposed restrictions on the company's directors and impounded unlawful gains.

The Securities and Exchange Board of India (SEBI) has leveled serious accusations against Debock Industries Limited, claiming the company engaged in investor fraud and deception towards regulatory authorities. Debock Industries, which is listed on the National Stock Exchange of India (NSE) and based in Jaipur, allegedly manipulated its financial records and siphoned off funds.

According to the company's FY23 Annual Report, Debock is involved in trading agricultural equipment, hospitality, and mining. Initially listed on the Innovators Growth Platform in June 2018, the company later moved to the main board of NSE in March 2022. SEBI's interim ex-parte order highlighted an unusual surge in revenue and purchases during the periods coinciding with the company's migration to the NSE's main board.

SEBI's investigation suggests that the company's promoters siphoned off funds and used preferential share allotments as a cover to migrate to the main board. These shares were allegedly transferred off-market to promoters, who then sold them to unsuspecting shareholders. SEBI also found that the company's rights issue was another tactic to siphon off funds, with most sales and purchases reported as fictitious. As a result, SEBI has taken stringent actions, including restraining key company figures from market activities and impounding illegal gains.

(With inputs from agencies.)