Debock Industries shares hit a fresh 52-week low on August 26 after the market regulator SEBI, on August 23, banned the company and its promoters from the capital market for ‘defrauding investors’.
The NSE-listed penny stock hit a new low of Rs 5.82, down sharply by 18.48 percent from its previous close of Rs 7.14 apiece. It had a hit an all-time low of Rs 3.5 apiece on July 6, 2020.
The scrip is trading lower than 5 - 200 day moving averages. Debock Industries is primarily engaged in trading agricultural equipment, hospitality services and mining.
Securities and Exchange Board of India (SEBI) on August 23 barred Rajasthan-based Debock Industries Ltd and its promoter and CMD Mukesh Manveer Singh from the capital markets for defrauding investors, which led to sharp downtrend in the stock.
The regulator noted that promoters have indulged in siphoning of funds from the company. Apart from these, Sunil Kalot, a promoter of Debock Industries (DIL), and Priyanka Sharma, wife of Mukesh Manveer Singh, have also been prohibited from the securities market.
In its order, Sebi said, "The actions of the company, prima facie, reveal 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 unsuspecting shareholders,” Sebi said in its interim order.
The regulator has also impounded total unlawful gains to the tune of Rs 89.24 crore earned from alleged fraudulent activities carried out by these three persons.
The company appeared to have inflated its FY22 sales by approximately 72 percent and FY23's sales by around 77 percent, and inflated its purchases by around 94 percent in both the financial years, said the order. These were done through circuitous transactions to present a positive picture.
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