Tag: SEBI

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Corporate

SEBI bars 221 entities in ₹144-cr stock scam

The Securities and Exchange Board of India (SEBI) has barred 221 entities from accessing the securities market after uncovering an alleged ₹144-crore pump-and-dump scam involving five listed companies. The action marks one of the regulator’s biggest crackdowns on organised stock price manipulation in recent years.

According to SEBI, the accused artificially inflated the prices of select low-liquidity stocks through coordinated trading before offloading their holdings at elevated prices. Retail investors were allegedly lured into buying these shares after misleading messages and promotional campaigns created the impression of strong investment opportunities.

The investigation revealed a well-planned network that used digital communication platforms, including WhatsApp groups, to coordinate trading activity and spread stock recommendations. SEBI also relied on financial records, call details, bank transactions and even food delivery records to establish links among the individuals involved in the operation.

The regulator found that the alleged scheme generated unlawful gains of around ₹144 crore. It has directed the accused entities to return the illegal profits while prohibiting them from buying, selling or dealing in securities until further orders.

SEBI also imposed a ₹10-crore penalty on Hanif Shekh, identified as one of the key individuals behind the alleged operation. Investigators said he played a central role in coordinating the manipulation and managing the network involved in the scheme.

The market watchdog said the case demonstrates the increasing sophistication of stock manipulation techniques and highlights its growing use of technology and digital evidence to detect financial misconduct. By analysing electronic communications and transactional data, investigators were able to reconstruct the alleged conspiracy and identify the participants.

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Corporate

OYO parent files ₹6,650 cr IPO papers with Sebi

OYO’s parent company, Oravel Stays Limited, through its holding entity Prism, has filed updated draft papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) worth ₹6,650 crore.

Founded by Ritesh Agarwal, OYO has expanded its presence across hotels, holiday homes and managed accommodations in India and several international markets. In recent years, the company has focused on improving profitability, streamlining operations and expanding premium offerings.

Unlike its earlier proposal, the IPO will consist entirely of a fresh issue of shares, with no offer-for-sale component. This means the entire amount raised will go to the company instead of existing shareholders.

The proposed public issue comes after OYO withdrew its earlier IPO plans and has now returned to the market with revised documents. The company plans to use the proceeds to strengthen its business, repay debt, support expansion and meet general corporate requirements.

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Beyond

SEBI clears reforms to boost markets

The Securities and Exchange Board of India (SEBI) has announced a fresh set of reforms aimed at making India’s financial markets more efficient, flexible and investor-friendly. The decisions, approved during the regulator’s latest board meeting, are expected to benefit investors, mutual funds, listed companies and alternative investment funds alike.

Among the key announcements is the revival of open-market share buybacks through stock exchanges. The mechanism, which allows companies to repurchase shares directly from the market, will return from August 2026 after being largely phased out in recent years. The move is expected to provide companies with a more flexible way to return surplus cash to shareholders while improving market participation.

SEBI has also allowed mutual funds to access intraday borrowing facilities to address temporary cash flow mismatches. The regulator said the borrowing facility can be used for short-term liquidity needs and will help fund houses manage redemption pressures more effectively. Industry participants believe the decision will strengthen operational efficiency without increasing systemic risk.

The board also approved measures to simplify fundraising for Alternative Investment Funds (AIFs). Faster approvals and streamlined processes are expected to help fund managers launch new investment schemes more quickly, supporting capital flow into startups, emerging businesses and other growth sectors.

In addition, SEBI introduced changes aimed at strengthening India’s broader financial ecosystem. The regulator approved reforms related to municipal bonds, securitisation and fundraising norms for smaller listed companies. These steps are designed to deepen capital markets and improve access to funding across different segments of the economy.

The latest decisions reflect SEBI’s continued focus on balancing market development with investor protection. By reducing procedural hurdles and improving liquidity management, the regulator hopes to make India’s capital markets more competitive and attractive for both domestic and global investors.

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Corporate

Razorpay files confidential papers for IPO

Indian fintech company Razorpay has taken a major step toward going public by filing confidential draft papers with the market regulator, the Securities and Exchange Board of India, for its proposed initial public offering (IPO).

According to reports, the company is planning to raise between ₹5,000 crore and ₹6,000 crore through the public issue. By choosing the confidential filing route, Razorpay can begin the regulatory review process without immediately disclosing detailed financial and business information to the public.

The confidential pre-filing mechanism, introduced by SEBI, allows companies to assess market conditions and regulatory feedback before publicly releasing their draft prospectus. This route has become increasingly popular among technology and start-up firms preparing for stock market listings.

Founded in 2014, Razorpay has emerged as one of India’s leading digital payments and financial services platforms. The company provides payment gateway solutions, banking services, payroll products and other financial technology offerings to businesses ranging from small merchants to large enterprises.

The proposed IPO is expected to include a combination of fresh issue of shares and an offer for sale by existing investors, although the final structure and size of the issue may change before the public launch. Detailed information about the offering is likely to be revealed once the company files its updated documents publicly.

Razorpay is backed by several prominent investors, including Peak XV Partners, along with other global venture capital and institutional investors. The company has been considered one of India’s most valuable fintech start-ups and has played a significant role in expanding digital payment adoption across the country.

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Beyond

SEBI proposes pay disclosure norms for AMCs

The Securities and Exchange Board of India (SEBI) has proposed changes to remuneration disclosure norms for mutual fund asset management companies (AMCs). Under the proposal, AMCs would no longer need to publicly disclose the names, designations and salaries of top executives and high-earning employees. Instead, compensation details would be reported in a consolidated format.

At present, mutual fund firms are required to disclose the remuneration of key officials, including the chief executive officer (CEO), chief investment officer (CIO), chief operating officer (COO), the top 10 highest-paid employees, and staff earning above specified salary thresholds. SEBI has proposed replacing these disclosures with category-wise compensation figures and the number of employees in each category.

The regulator said the proposal follows industry feedback highlighting concerns around employee privacy, data protection and the limited value of individual salary disclosures for investors. Industry participants also argued that such requirements could put AMCs at a disadvantage in attracting and retaining talent compared with portfolio management services (PMS) firms and alternative investment funds (AIFs), which do not face similar disclosure norms.

According to SEBI, consolidated reporting would continue to provide investors with an overview of senior management compensation while ensuring disclosures remain relevant and proportionate. Its analysis found that employees covered under the current rules account for only a small portion of the workforce at most AMCs.

SEBI has also proposed that scheme-level remuneration details of fund managers should not be publicly disclosed, though they may be shared with investors holding units in the concerned scheme upon request.

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1 Minute-Read

Rajesh Exports under regulatory lens after Sebi order

Rajesh Exports is facing increased scrutiny after a recent Securities and Exchange Board of India (Sebi) order related to alleged financial irregularities. The development could impact the company’s eligibility under the government’s Production Linked Incentive (PLI) scheme for electronics manufacturing.

The company has denied any wrongdoing and said it is cooperating fully with regulators. Rajesh Exports also informed Sebi that nearly 400 GB of documents submitted during the investigation could not be located by the regulator and will be resubmitted within 15 days.

No final decision has been taken on the company’s PLI status, and the review remains ongoing.

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Beyond

SEBI bars Rajesh Exports promoter

The Securities and Exchange Board of India (SEBI) has barred the promoter of Rajesh Exports from accessing the securities market after alleging large-scale misrepresentation of the company’s revenue figures.

In an interim order, SEBI said the Bengaluru-based gold exporter and jewellery manufacturer overstated its revenue by more than ₹15 lakh crore over multiple financial years. According to the regulator, the company reported sales transactions that lacked genuine economic substance, resulting in an inflated picture of its business operations and financial performance.

SEBI’s investigation found that a significant portion of the reported turnover came from transactions involving related entities and circular trading arrangements. The regulator said these transactions appeared to have been structured mainly to inflate reported revenues rather than reflect actual business activity.

The market watchdog stated that such disclosures may have misled investors, analysts and shareholders by portraying Rajesh Exports as a much larger business than it actually was. SEBI stressed that accurate financial reporting is essential for maintaining investor confidence and ensuring fair functioning of capital markets.

As part of the interim action, the promoter has been restrained from buying, selling or dealing in securities until further orders. SEBI has also launched a detailed investigation to examine the extent of the alleged violations and determine whether other individuals or entities were involved.

Rajesh Exports is one of India’s largest gold refining and jewellery companies and has often reported among the highest revenues in the corporate sector. Its turnover figures had frequently drawn attention because of their scale relative to the company’s profitability.

SEBI clarified that the interim order is based on preliminary findings and does not amount to a final determination of wrongdoing. The company and its promoter will have an opportunity to present their responses during the investigation.

The case has attracted significant attention due to the scale of the alleged revenue overstatement. Investors and market participants will closely monitor further developments as SEBI’s probe progresses and more details emerge about the company’s financial reporting practices.

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Beyond

OYO parent gets SEBI approval for ₹6,500 cr IPO

Oravel Stays Ltd, the parent company of hospitality and travel platform OYO, has received approval from the Securities and Exchange Board of India (SEBI) to launch its much-awaited initial public offering (IPO).

The company plans to raise around ₹6,500 crore through the public issue, marking a major step in its journey towards becoming a publicly listed company. The approval comes after multiple attempts by OYO to enter the stock market over the past few years.

According to reports, the IPO will include a fresh issue of shares as well as an offer-for-sale component. The funds raised are expected to be used for business expansion, debt reduction, technology investments and other corporate requirements.

Founded by entrepreneur Ritesh Agarwal in 2013, OYO has grown from a budget hotel aggregation platform into one of the world’s largest hospitality technology companies. The company operates hotels, homes and vacation rentals across several countries and has built a significant presence in India and international markets.

In recent years, OYO has focused on improving profitability, streamlining operations and strengthening its balance sheet. The company has reported better financial performance, supported by higher occupancy rates, stronger demand for travel and cost-control measures. These improvements are believed to have helped the company secure regulatory approval for its IPO plans.

The proposed public offering comes at a time when India’s primary market remains active, with investors showing interest in companies that have demonstrated a clear path to profitability. Market participants will closely watch OYO’s valuation, growth strategy and financial performance as details of the IPO emerge.

With SEBI’s approval now in hand, OYO is expected to move ahead with the next stages of the IPO process, including finalising issue details and launch timelines. The offering is likely to be among the most closely watched public issues in India’s startup ecosystem this year.

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Beyond

Sebi imposes ₹28.95 cr fine on Suzlon Energy

India’s market regulator has imposed a penalty of ₹28.95 crore on Suzlon Energy and several of its former executives over alleged misrepresentation of financial information and failure to make accurate disclosures to investors.

The action was taken by Securities and Exchange Board of India (Sebi) following an investigation into transactions involving the company and related entities. According to the regulator, certain disclosures made to investors did not fully reflect the nature of the transactions, resulting in misleading information being presented to the market.

Sebi found that the company had failed to provide complete and transparent details regarding financial arrangements linked to related parties. The regulator said these omissions affected the quality of information available to shareholders and could have influenced investment decisions.

As part of the order, penalties were imposed on Suzlon as well as several individuals associated with the company during the period under review. Among those named was Girish Tanti, who was fined for his role in the matter.

The regulator stated that listed companies have a responsibility to maintain high standards of corporate governance and ensure timely, accurate and complete disclosures. Transparency, Sebi noted, is essential for protecting investor interests and maintaining confidence in capital markets.

Suzlon, one of India’s leading renewable energy companies, has not publicly commented in detail on the order. The company retains the option to challenge the regulator’s findings through the appropriate legal channels.

The case relates to historical transactions and disclosures examined by the regulator. Sebi concluded that the company and certain executives violated provisions of securities regulations governing disclosure requirements and fair treatment of investors.

The penalty comes as regulators continue to increase scrutiny of corporate governance practices and disclosure standards among listed companies.

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Beyond

SEBI plans new rules for Options Trading

Securities and Exchange Board of India (SEBI) has proposed a new system for option strike prices to make trading more flexible and easier during sharp market movements.

The market regulator wants to introduce a dynamic framework that would allow option strike prices to adjust according to changing market conditions. The move is aimed at ensuring traders have access to more suitable price levels when markets move quickly.

Currently, option strike prices are introduced based on existing exchange rules. However, during periods of high volatility, traders can sometimes face difficulties if available strike prices do not match rapidly changing market conditions.

SEBI believes a more flexible system could help maintain smooth trading and improve the overall experience for market participants. The proposal is also expected to support better risk management and provide traders with more choices.

Options are widely used by traders and investors to manage risk and make market bets. The strike price is an important part of these contracts because it determines the level at which buying or selling can take place.

Market experts say the proposed changes could make options trading more efficient, especially during periods of sudden market movement. A wider range of relevant strike prices could help traders react more effectively to changing situations.

SEBI has invited comments and suggestions from stakeholders before taking a final decision on the proposal.

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