SEBI has banned seven companies involved in stock trading, capital increased from 40 crores to 4000 crores in eight months

SEBI has banned seven companies involved in stock trading from the market. These include Pacheli Industrial Finance, Abhijeet Trading, Calix Securities, Hibiscus Holdings, Avail Financial Services, Adaptica Retail India and Sulphur Securities.

SEBI said, Pacheli Industrial took a loan of 1,000 crores from six entities classified as non-promoters, which was converted into equity through preferential allotment. But, the loan and money were only circulated on paper. Those pretending to give loans got 99.28% of the company's shares. That is, the entire company went into their hands. Only 0.72 percent shares were being traded. In this way, the share price was increased arbitrarily. Due to this, the company's capital increased from 40 crores to 4,000 crores in eight months. Between December 2, 2024, and January 16, 2025, the company's share price increased by 372 percent.

While eight ex and existing officials of the parent company of Paytm, One97 Communication, settled the issue with SEBI by paying an amount of Rs 3.32 crore, including Amit Khera, Ashit Lilani, Neeraj Arora, Pallavi Shroff among others. The rules concerning the salary provided to the company's MD Vijay Sharma and his relatives were violated.