SEBI imposes Rs. 88 lakh penalty and 2-month market restraint; company says it will challenge the order
SEBI passed an order dated October 30, 2026 imposing a total penalty of Rs. 88 Lakh on EKI Energy and other individuals for various alleged violations of securities market regulations.
By ScoutQuest · · 3 min read
- Total Penalty Imposed
- total penalty of Rs. 88 Lakh on EKI Energy and other individuals
- Company Restraint & Penalty
- restrained from accessing the securities market and dealing in securities for 2 months, and must pay Rs. 12 lakh within 45 days
- MD Restraint & Penalty
- MD Manish Kumar Dabkara faces a 12-month restraint and a Rs. 28 lakhs penalty
SEBI order received and disclosed
The company told BSE that SEBI passed an order dated October 30, 2026 (Ref. QJA/MN/CFID/CFID-SEC6/32818/2026-27) under Sections 11(1), 11(4), 11(4A), 11B(1) and 11B(2) of the SEBI Act, 1992. The company says it received the order by e-mail on November 2, 2026 at approx. 10:44 a.m. and disclosed it to the exchange the same day.
The clarification was given in response to BSE's letter seeking comments on a news item dated October 31, 2026 and on the movement in the company's scrip on November 2, 2026. The company said the movement in its scrip is purely market-driven and it has no control over trading in its shares.
What the order says
- Total monetary penalty of Rs. 88 Lakh on the company and other individuals for various alleged violations of securities market regulations.
- On the company: restrained from accessing the securities market and dealing in securities for 2 months from the date of the order, and a penalty of Rs. 12 lakh (Rs. 7 lakh under Section 15HA and Rs. 5 lakh under Section 15HB), payable within 45 days of receipt.
- Mr. Manish Kumar Dabkara: restraint of 12 months and penalty of Rs. 28 lakhs.
- Mr. Mohit Kumar Agarwal: restraint of 8 months and penalty of Rs. 19 lakhs.
- Mr. Naveen Sharma: restraint of 5 months and penalty of Rs. 13 lakhs.
- Ms. Sonali Sheikh: restraint of 1 month and penalty of Rs. 6 lakhs.
- Penalties also imposed on Ms. Itisha Sahu (Rs. 2 Lakhs), Mr. Ritesh Gupta, independent director (Rs. 4 Lakhs) and Mr. Burhauddin Ali Husain Maksiwala, independent director (Rs. 4 Lakh).
- Mr. Manish Dabkara is directed to take steps to recoup the amount held to be diverted.
The alleged violations
The order cites alleged violation of Regulation 2(1)(c), particularly clause (5) and (8) of the PFUTP Regulations, and Section 12A(c) of the SEBI Act, 1992 read with Regulations 3(d), 4(1) and 4(2)(f), (k) and (r) of the PFUTP Regulations. It also cites alleged violation of Regulation 4(1)(a), (b), (c), (e), (g), (h), (j), Regulations 33(1)(a), (c) and Regulation 48 of the LODR Regulations read with Ind AS 115.
What the company says
- On a preliminary reading, it does not concur with certain assertions and actions taken by the authority.
- It states that it has been exonerated by the Ministry of Corporate Affairs against the same allegations and transactions, and in the annexure states that it has not been found guilty by the Ministry of Corporate Affairs on the same allegations.
- It is evaluating legal remedies and preparing to challenge the matter before appropriate authorities, including an appeal before the Securities Appellate Tribunal under Section 15T of the SEBI Act, 1992.
- It says there is no other material impact on the financial, operational or other activities of the company, and that its business, ongoing projects and regular business transactions remain functional.
- It confirmed that no negotiations or discussions are taking place or took place in the relevant period relating to any material transaction or development, and that apart from the order it is not aware of any undisclosed price-sensitive information.
How to read this
A restraint from accessing the securities market is a regulatory restriction on the company and the named individuals from accessing or dealing in the securities market for the stated period. It is separate from the company's day-to-day business operations, which the company says continue normally. The order is stated to be subject to the legal remedies the company intends to pursue; unless set aside or modified, it stands as passed.
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More numbers
- Total penalty on company and individualsRs. 88 Lakh
- Penalty on the companyRs. 12 lakh
- Company penalty under Section 15HARs. 7 lakh
- Company penalty under Section 15HBRs. 5 lakh
- Company restraint from securities market2 months
- Time to pay company penalty45 days
- Manish Kumar Dabkara restraint12 months
- Penalty on Manish Kumar DabkaraRs. 28 lakhs
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