Sebi Bars 39 Entities for Alleged Manipulation of RRP Semiconductor Share Prices
Regulator bars 39 entities for alleged manipulation of RRP Semicon share price
The Economic Times
Image: The Economic Times
The Securities and Exchange Board of India (Sebi) has barred 39 entities from trading RRP Semiconductor shares due to alleged price manipulation. The company's share price skyrocketed from ₹15 to ₹10,887 in 19 months, a rise deemed unsupported by its financials, prompting an investigation into coordinated trading activities.
- 01Sebi issued an interim order against 39 entities involved in RRP Semiconductor's share price manipulation.
- 02The company's share price increased over 700 times from ₹15 to ₹10,887 in just 19 months.
- 03The investigation revealed a coordinated effort among promoters and trading entities to inflate share prices.
- 04Rajendra Chodankar emerged as the primary beneficiary, holding 74.5% of the company's shares post-allotment.
- 05Sebi identified suspicious trading patterns indicative of a manipulative strategy rather than genuine market behavior.
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The Securities and Exchange Board of India (Sebi) has taken action against 39 entities for their roles in manipulating the share price of RRP Semiconductor. The company's stock price surged from ₹15 in April 2024 to an astonishing ₹10,887 by October 2025, a 700-fold increase that raised red flags due to a lack of supporting financial fundamentals. Sebi's investigation uncovered a network involving promoters, preferential allottees, and trading entities that artificially inflated the stock price. The scheme reportedly began with Ira Mishra acquiring control of the company, followed by significant preferential allotments to select individuals, including Rajendra Chodankar, who now holds 74.5% of RRP's shares. The trading patterns observed—characterized by minimal sell quantities and aggressive buy orders—suggest a pre-arranged strategy to manipulate the market, according to Sebi's findings.
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This ruling may affect investor confidence in the semiconductor sector and prompt stricter regulations on share trading practices.
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