Markets Securities & Exchange Board
SEBI alleges Veerkrupa Jewellers misled investors in SME IPO
This order addresses SEBI's investigation into alleged fraudulent schemes and market manipulation involving the SME IPO of Veerkrupa Jewellers Limited and subsequent trading in its shares.
It details the charges against the company, its management, merchant bankers, and other individuals for publishing misleading information and creating a false appearance of trading volume.
Who it concerns: 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
What SEBI found or ordered
- SEBI alleged that Noticees 1-11 participated in a fraudulent scheme to publish misleading information regarding the SME IPO to influence investors.
- SEBI alleged that Noticees 10, 11, 12, 13, and 15 created a misleading appearance of trading and contributed to volume/price rises during specific periods (Patch-1 to Patch-4).
- SEBI alleged that Noticee 6 (Merchant Banker) violated ICDR and Merchant Banker Regulations.
- SEBI alleged that Noticees 10 and 11 failed to respond to summons or appear before the Investigating Authority.
- SEBI noted that Noticees 9 and 12 did not reply to the Show Cause Notice or appear for hearings, leading SEBI to presume they admitted the charges.
- SEBI called upon Noticees 3, 10, 11, 12, 13, and 14 to show cause regarding disgorgement of wrongful gains.
Also in the document
- The investigation period covered June 20, 2022, to May 31, 2024.
- The stock price of Veerkrupa Jewellers Limited fluctuated significantly, rising from an open of ₹27 to a high of ₹146 during the investigation period before falling to a low of ₹1.20 after a share split.
- SEBI cited precedents from the Securities Appellate Tribunal (SAT) to support the presumption of admission for parties who failed to respond to notices.
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The original document
Securities & Exchange Board of India (SEBI) — enforcement orders
Regulatory order · 29 May 2026
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