Sebi Bars Elitecon Over Alleged 'Pump-and-Dump' Scheme

The Securities and Exchange Board of India (Sebi) has issued an interim order barring Elitecon International and its promoter, Vipin Sharma, from the securities market due to alleged stock price manipulation and misleading disclosures. Sharma and four other individuals are directed to return ₹51 crore in illicit gains. Sebi's investigation revealed an extraordinary surge in Elitecon's stock from approximately ₹11 in August 2024 to a peak of ₹629 in June 2025, followed by a sharp fall. This pattern suggests a 'pump-and-dump' scheme, with promoter Sharma and connected entities allegedly offloading shares during peak price periods.

The company's share capital also experienced a dramatic expansion of over 1,500 times between 2019 and 2025, alongside a more than 100-fold increase in public shareholders. Sebi highlighted serious disclosure lapses, including the company's alleged failure to promptly disclose GST demands exceeding ₹400 crore and to inform exchanges about its registered office being sealed. The regulator's order aims to prevent further market manipulation.