Amid SEBI Crackdown For Investor Fraud, Debock Industries Share Hit 52-Week Low
Debock Industries Ltd.'s share price hit a 52-week low after SEBI banned the company from the capital market for 4 years for defrauding investors.
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The Debock share price hit a 52-week low on Monday following the crackdown by the Securities and Exchange Board of India for allegedly defrauding investors. Debock Industries Ltd's market capitalization has eroded significantly, raising questions about the company's future viability.
SEBI's investigation found that Debock Industries appeared to make misleading statements and had inflated its FY22 sales by 72% and FY23 by 77%, as well as inflated its purchases by around 94% in both financial years.
The company has yet to respond to the SEBI allegations, but investors are demanding answers. "We were misled by the company's rosy projections, and now our investments are at risk," said one investor who wished to remain anonymous.
The regulator noticed that promoters had siphoned funds from the company. Aside from this, Sunil Kalot, a promoter of Debock Industries (DIL), and Priyanka Sharma, Mukesh Manveer Singh's wife, have been prohibited from the securities market.
In its order, SEBI said, "The Debock Industries news reveals a brazen and calculated effort to defraud investors and deceive regulatory authorities. Once allotted, the shares were quietly transferred off-market to the promoters, who then offloaded them onto unwary stockholders."
