Sebi bars 19 from trading in Osiajee Texfab for alleged market fraud

Market regulator alleges coordinated trades and misleading disclosures fuelled an unjustified surge in Osiajee Texfab's share price

The Securities and Exchange Board of India (Sebi) on Thursday barred 19 individuals and entities, including the company's directors, from dealing in the scrip of Osiajee Texfab (OTL) over alleged fraudulent practices.

 

The share price of the company had surged from Rs 50.4 apiece in January 2025 to Rs 474.8 per share in January 2026. The regulator noted that the extraordinary increase in the company's share price was not supported by genuine economic fundamentals, such as nil revenue from textile operations, no significant corporate announcement, or any material event to justify the sharp rise.

 

Sebi's findings showed that the top 10 last traded price (LTP) contributors between April and May in the company's shares were from one stockbroker — Shreni Shares — and had opened their accounts in October 2025. These participants contributed nearly 67.38 per cent of the total positive trades during the two-month period.

 

 

The market regulator will undertake a detailed investigation into the matter. Additionally, it is also probing the alleged misconduct of the stockbroker.

 

The regulator, in its ex parte interim order, also ordered the disgorgement of Rs 82.56 lakh of wrongful gains from the stockbroker. The stockbroker had sold its holdings in the company after Sebi's site visit.

 

The watchdog's probe indicates that there were fund transfers between the alleged manipulators, the management family group and the LTP contributors. The findings also established that these players were connected and synchronised their trades.

 

"These financial arrangements prima facie indicate commonality of purpose and coordination amongst the noticees to artificially increase the price and volume of shares of OTL so as to induce and deceive innocent investors," noted Sebi Whole-time Member K V R Murty in the 53-page order.

 

The order states that the company disseminated misleading information regarding its business and that the shares of OTL had "ceased to reflect genuine demand and supply, and instead appear to have been influenced by manipulative and deceptive activities".

 

Sebi pointed out that there was a likelihood of misuse of the securities market if immediate preventive action was not taken.

 

"The timing of such sale, immediately after the site visits and before completion of investigation, raises a reasonable apprehension that the proceeds arising from the alleged violations may be dissipated, diverted or otherwise rendered unavailable for disgorgement or restitutionary proceedings, unless immediate preventive directions are issued," the order noted. 

S Korean firm invests ₹900 cr in Choice Equity broking

 

South Korea-based NH Investment & Securities, a subsidiary of NH Financial Group, bought ₹900 crore worth of compulsorily convertible preference shares (CCPS) in Choice Equity Broking. Choice Equity allotted 4.2 million CCPS priced at ₹2,130 per share totalling ₹899.99 crore, according to a regulatory filing.