Shares of Debock Industries Ltd. fell by nearly 12%, hitting a 52-week low of Rs 5.82 on 26th August, after SEBI banned the company and its promoters from the capital market on 23rd August for ‘defrauding investors’.

Debock Industries’ penny stock listed on the NSE sank heavily by 18.48% to hit a low of Rs 5.82 from the earlier closing value of Rs 7.14. On 6th July, 2020, it had reached an all-time low of Rs 3.5. The stock is currently trading below its 5-200 day moving averages.

Debock Industries, which focuses on trading agricultural equipment, hospitality services, and mining, saw a sharp decline in its stock after SEBI barred the company and its promoter, Mukesh Manveer Singh, from the capital markets on 23rd August for defrauding investors.

SEBI noted that the company’s promoters siphoned funds from the company. Sunil Kalot, a promoter, and Priyanka Sharma, the wife of Mukesh Manveer Singh, have also been banned from the securities market.

SEBI’s order stated that the company’s actions showed a deliberate effort to defraud investors and deceive regulators. Shares were secretly transferred off-market to promoters, who then sold them to unsuspecting shareholders.

SEBI has seized Rs 89.24 crore in unlawful gains from three individuals involved in alleged fraudulent activities.

The company inflated its FY22 sales by 72%, FY23 sales by 77%, and purchases by 94% in both years through circular transactions to present a positive image.

At 3:30 PM, the shares of Debock Industries closed 11.62% lower at Rs 6.31 on NSE.

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