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Securities and Exchange Board of India (SEBI) fined Elite Con International, a cigarette-maker, ₹51 crore and banned it from the securities marketplace for allegedly inflating the terms of the company’s banal and dumping connected retail investors, gaining ₹51.2 crore, according to its Ex-parte bid released 31, March 2026.
The interim bid was passed against noticees Vipin Sharma who is the company’s promoter, Pawan Kumar Ray, its non-promoter and 3 others progressive successful the strategy asking them to disgorge the profits gained from the pump and dump strategy and banning them from the superior markets.
Whole Time Member Kamlesh Varshney wrote successful the interim bid that Noticees archetypal consolidated shares of their company, Elitecon, and past elevated the prices of the shares to merchantability the securities astatine artificially inflated levels to guiltless investors. The ostentation was done done by “making delayed and misleading disclosures,” helium wrote, adding that the non-disclosure of accusation oregon dissemination of misleading quality astir the institution were deliberate.
“The grounds prima facie reveals that the institution suppressed worldly facts solely with an nonsubjective to prolong a affirmative marketplace sentiment for buying successful the scrip coinciding with the clip erstwhile Noticees were liquidating their shareholdings. Prima facie unlawful gains person been made by Noticees done specified fraudulent and manipulative activities.” Mr. Varshney said.
Mr. Varshney directed banks, depositories and RTAs to frost their accounts and investments, which volition beryllium relaxed connected outgo of ₹51 crore. He has besides recommended that the regulator name forensic auditors to look into the fiscal statements of the company. SEBI gave the noticees 21 days to respond.
