Mumbai, March 31 (IANS) The Securities and Exchange Board of India (SEBI) has initiated regulatory action against Elitecon International Ltd after finding prima facie evidence of a pump-and-dump scheme in the company’s shares. The capital markets regulator observed that the stock surged more than 60 times within a short period before witnessing a sharp decline, a pattern it said was indicative of manipulative trading.In addition, the price rally was allegedly supported by coordinated trades and fund transfers involving promoters and connected entities.

SEBI also flagged abnormal financial growth, noting that the company’s revenue jumped nearly 686 times over a two-year period.A sharp spike was recorded in the September 2025 quarter, when revenue rose from Rs 525 crore in the June quarter to Rs 2,195.8 crore.Investigators suspect that the company had little or no genuine business activity and may have issued misleading corporate disclosures to attract retail investors during the price surge.The regulator further alleged that insiders offloaded shares at elevated levels. Promoter Vipin Sharma has allegedly been identified as a key seller during the peak phase, when trading volumes and prices were at their highest.

SEBI has also accused the company of serious disclosure lapses, including failure to promptly inform shareholders about a Rs 408 crore Goods and Services Tax (GST) action. Other material developments were either delayed or not disclosed, potentially depriving investors of critical information.According to the market watchdog, the investigation is ongoing with a detailed examination of trading patterns, financials, and linkages between entities underway.Moreover, a final order, including possible penalties and market restrictions, will follow after completion of the probe and due process.Shares of Elitecon International on Monday settled at Rs 48.38 apiece on the BSE, a decline of almost 5 per cent.

/IANS