The Securities and Exchange Board of India (Sebi) on Friday passed an interim order in the matter of RRP Semiconductor for alleged share price manipulation and barred 39 entities from dealing in the company's shares. According to reports from The Economic Times, the regulator discovered a systematic approach that inflated the company's share price beyond sustainable limits, with the stock rising over 725 times in just 19 months. The order, issued in a 47-page interim order, restricted the company's promoters/directors Ira Mishra, Sumita Mishra and Ramesh Mishra, along with three entities viz. Multiplier Share & Stock Advisors Pvt. Ltd, Pace Stock Broking Services Pvt. Ltd and Neo Apex Venture LLP, plus 33 others from buying and selling the stock.
As reported by The Economic Times, the company's shares rose from ₹15 in April 2024 to ₹10,887.10 by October 2025, representing a 725-fold jump that was not supported by its financials or business fundamentals. During its investigation, Sebi observed that there was a coordinated network of promoters, preferential allottees, off-market transferees and a set of trading entities, who artificially inflated the share price of RRP Semiconductor. The regulator noted that the trading pattern, scale of price increase, and interconnectedness of entities reflect a level of planning and coordination that is inconsistent with independent trading behaviour.
According to Sebi's investigation reported by The Economic Times, the scheme appears to have commenced with the acquisition of control of the company by Ira Mishra, the daughter of Ramesh Mishra, who was subsequently appointed as a director in the company. This was followed by a significant increase in the share capital of RRP through preferential allotment of shares to select entities, with the primary beneficiary being Rajendra Chodankar who holds 74.5% of the share capital post allotment. However, the order noted a significant change in shareholding patterns, with the promoters' shareholding reducing from 74.5% to 1.28% after the preferential allotment of 1,35,25,000 shares to 31 entities following shareholders' approval at the EGM held on May 27, 2024.
As reported by The Economic Times, the preferential allotment was accompanied by the company altering its MoA and changing its name to 'RRP Semiconductor' to showcase its future forays into the promising semiconductor space. The public shareholding was fragmented and distributed through a chain of off-market transfers to multiple entities in small quantities, with off-market transferees subsequently selling shares in minuscule quantities to entities that consistently placed large buy orders at upper circuit limits. Sebi's examination revealed that several entities involved in the off-market transfers were connected through calls, fund transfers or common addresses, indicating a coordinated network.
According to Sebi whole-time member Amarjeet Singh as reported by The Economic Times, the trading pattern characterized by insignificant sell quantities and aggressive buy orders at circuit limits is prima facie not reflective of genuine market behaviour, but indicative of a pre-arranged and manipulative strategy to artificially inflate the price of the scrip. The regulator has now barred 39 entities from dealing in the company's shares as part of its enforcement action. Additionally, Sebi ordered the imounding of approximately ₹2 crore made as "unlawful gains" by the three entities, while directing depositories NSDL and CDSL to freeze the equity shares of RRP in the demat accounts of the accused. The order also noted that top contributors to last traded price gains have already exited their positions, booking significant profits, while there has been a sharp surge in the number of public shareholders, suggesting that retail investors were drawn into the stock at elevated and possibly inflated prices.
