SEBI finds ex parte order against 11 noticees in Veerkrupa IPO fraud case

This order addresses SEBI's investigation into alleged fraudulent publicity and market manipulation surrounding the SME IPO of Veerkrupa Jewellers Limited (VJL) and the subsequent trading of its shares. It details the charges against the issuer, its management, merchant bankers, and individuals accused of creating misleading trading appearances and wrongful gains.

M/s Veerkrupa Jewellers Limited, Mr. Chirag Arvind Shah, M/s Vivid Mercantile Limited, Mr. Satishkumar Ramanlal Gajjar, Mr. Rakshit Mahendra Shah, M/s First Overseas Capital Limited, Mr. Rushabh Shroff, Mr. Satish Vadilal Sheth, M/s Stockk Seva Marketing Private Limited, Mr. Meghkumar Mahendrakumar Shah, Mr. Bhavya Dhiman, Mr. Dipak Mathurbhai Salvi, M/s Bhavesh A Vora HUF, Mr. Dharmesh Maldevbhai Godhania, Mr. Akshay Rajendrabhai Oswal, M/s NNM Securities Private Limited, M/s Miker Financial Consultants Private Limited

• SEBI alleged that Noticees 1-11 participated in a fraudulent scheme involving misleading publicity for the VJL SME IPO.
• SEBI alleged that Noticees 10, 11, 12, 13, and 15 created a misleading appearance of trading to influence price and volume, resulting in wrongful gains.
• SEBI alleged that Noticee 6 (Merchant Banker) violated ICDR and Merchant Banker regulations.
• SEBI found that Noticees 9 and 12 deliberately avoided proceedings and did not respond to the Show Cause Notice, leading to their charges being deemed admitted.
• SEBI alleged that Noticees 10 and 11 failed to respond to summons or appear before the Investigating Authority, violating procedural regulations.

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