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Sebi Bans Textile Firm for Share Price Manipulation
10 Jul
Summary
- Sebi banned Osiajee Texfab and its MD from securities markets.
- Shares surged 842% without positive corporate developments.
- Company claimed steady growth despite negligible revenue.
The Securities and Exchange Board of India (Sebi) has imposed a ban on Osiajee Texfab and its managing director, along with several other entities, from participating in the securities market. This action stems from allegations of share price manipulation through synchronized trades and misleading corporate announcements.
During the period of April 30 to May 14, 2026, Sebi observed significant trading activity concentrated through a specific branch of Shreni Shares Ltd. This branch was managed by the husband of Osiajee Texfab's managing director. Notably, the textile company's shares experienced a dramatic increase of nearly 842%, rising from ₹50.40 on January 30, 2025, to ₹474.80 on January 27, 2026, with another sharp rise noted in May 2026.
Sebi's preliminary examination highlighted that the company's claims of 'growing steadily' were contradicted by its financial performance. Standalone textile operations generated virtually no revenue, indicating a disconnect between reported business status and actual financial generation. The regulator's ex-parte interim order addresses these alleged manipulative practices.
