Home / Business and Economy / Sebi Bars Droneacharya, Promoters for Two Years
Sebi Bars Droneacharya, Promoters for Two Years
29 Nov
Summary
- Droneacharya and promoters banned from securities market for up to two years.
- Total fines amounting to Rs 75 lakh were levied by Sebi.
- Promoters and company accused of misusing IPO funds and fraudulent disclosures.
The Securities and Exchange Board of India (Sebi) has imposed significant penalties on Droneacharya Aerial Innovations Ltd and its key personnel, including promoters Prateek and Nikita Srivastava. They have been barred from the securities market for up to two years, with total fines reaching Rs 75 lakh, for alleged misuse of IPO proceeds and fraudulent corporate disclosures.
An investigation revealed that following its IPO listing, Droneacharya and its promoters made misleading announcements to artificially inflate share prices and create demand. The company is accused of inflating revenues and profits, and deviating from the IPO's stated objectives without shareholder approval. IPO proceeds were reportedly misutilized, and financial statements were misrepresented to deceive investors and facilitate pre-IPO exits.
Sebi's order also implicated Instafin Financial Advisors LLP and Sandeep Ghate for actively aiding these activities, and Micro Infratech Pvt Ltd for providing inflated invoices. These actions collectively contributed to misrepresenting the company's financials and defrauding the market. The investigation covered financial years 2022-23 and 2023-24.
