Sebi Bans Debock Industries Over Massive Fraud

Sebi has barred Rajasthan-based Debock Industries Ltd and its promoter and CMD Mukesh Manveer Singh from the capital markets for defrauding investors. Promoters siphoned funds, leading to unlawful gains of Rs 89.24 crore. The company, engaged in trading agricultural equipment, hospitality services, and mining, was accused of deceptive practices.

In a decisive move, markets regulator Sebi on Friday barred Rajasthan-based Debock Industries Ltd and its promoter and CMD Mukesh Manveer Singh from capital markets for defrauding investors.

The regulator highlighted that promoters siphoned funds from the company. In addition, Sunil Kalot and Priyanka Sharma have been prohibited from the securities market and unlawful gains of Rs 89.24 crore have been impounded. Restrictions have also been imposed on the company, listed on the NSE and engaged in agricultural equipment trading, hospitality services, and mining. The company initially listed on the Innovators Growth Platform in 2018, migrated to the main board in 2022.

Sebi stated that company's activities reveal a calculated effort to defraud investors and deceive regulatory authorities, with shares quietly transferred off-market to promoters and then offloaded onto unsuspecting shareholders. Promoter shareholding dramatically decreased from 64.79% to 9.41% between FY21 and FY24, while the public shareholding increased from 35.21% to 90.56%. Most reported sales and purchases were fictitious, conjured up to inflate the balance sheet, turning the financials of the company into a work of fiction. Accordingly, Sebi has barred the accused from all security dealings and holding key positions in any listed company or Sebi-registered intermediary until further orders.

(With inputs from agencies.)