The Securities and Exchange Board of India (Sebi) has barred Debock Industries and its promoter-managing director, Mukesh Manveer Singh, from the securities market for seven years, along with several directors and associates for three to five years, for allegedly orchestrating a large-scale accounting fraud.
Sebi ordered Singh and the directors to jointly and severally disgorge unlawful gains of ₹59.30 crore with 12 per cent interest, and directed Debock to bring back ₹49 crore diverted from its 2023 rights issue, with interest. The regulator also levied penalties totalling over ₹28 crore, with Singh alone fined ₹20.10 crore.
In its final order, Sebi found that Debock inflated sales and purchases through circular transactions and fictitious entries to engineer its 2022 migration to the NSE mainboard, forged bank statements, and issued preferential warrants and bonus shares without any genuine consideration being received. Rights issue proceeds were routed through related entity Impex Agrotech to promoters and, eventually, overseas entities, the order noted.
