SEBI fines EliteCon ₹51.2 crore on alleged insider trading

Securities and Exchange Board of India (SEBI) fined Elite Con International, a cigarette-maker, ₹51 crore and banned it from the securities market for allegedly inflating the price of the company’s stock and dumping on retail investors, gaining ₹51.2 crore, according to its Ex-parte order released 31, March 2026.

The interim order was passed against noticees Vipin Sharma who is the company’s promoter, Pawan Kumar Ray, its non-promoter and three others involved in the scheme asking them to disgorge the profits gained from the pump and dump scheme and banning them from the capital markets. 

Whole Time Member Kamlesh Varshney wrote in the interim order that Noticees first consolidated shares of their company, Elitecon, and then elevated the prices of the shares to sell the securities at artificially inflated levels to innocent investors. The inflation was done through by “making delayed and misleading disclosures,” he wrote, adding that the non-disclosure of information or dissemination of misleading news about the company were deliberate. 

“The evidence prima facie reveals that the company suppressed material facts solely with an objective to sustain a positive market sentiment for buying in the scrip coinciding with the time when Noticees were liquidating their shareholdings. Prima facie unlawful gains have been made by Noticees through such fraudulent and manipulative activities.” Mr. Varshney said.

Mr. Varshney directed banks, depositories and RTAs to freeze their accounts and investments, which will be relaxed on payment of ₹51 crore. He has also recommended that the regulator appoint forensic auditors to look into the financial statements of the company. SEBI gave the noticees 21 days to respond.