The Securities and Exchange Board of India has barred 19 individuals and entities, including directors of Osiajee Texfab Limited, from accessing the securities market through an interim order in an alleged share manipulation case. The regulator has alleged coordinated trading, misleading disclosures and artificial inflation of the company’s share price.
According to SEBI, the share price of Osiajee Texfab rose from around ₹50.40 in January 2025 to ₹474.80 per share in January 2026. The regulator observed that the sharp increase was not supported by the company’s business fundamentals or any material corporate developments.
Share Price Rise Under Scrutiny
SEBI said the company had no revenue from textile operations and there was no significant corporate announcement that could justify the steep rise in its share price.
The regulator’s preliminary findings indicate that the market price of the shares did not reflect genuine demand and supply. Instead, SEBI alleged that the price movement appeared to be influenced by manipulative and deceptive activities.
The order also states that the company allegedly disseminated misleading information about its business, which may have contributed to artificial market interest in the stock.
Coordinated Trading Alleged
The preliminary investigation found that the top 10 contributors to the Last Traded Price during April and May 2026 were all associated with a single stockbroker, Shreni Shares.
These participants had opened their trading accounts in October 2025 and accounted for nearly 67.38% of the positive trades executed during the two-month period.
SEBI’s prima facie findings suggest that financial transactions took place between alleged manipulators, members of the company’s management family group and traders who contributed to the movement in the Last Traded Price. The regulator said these parties appeared to be interconnected and may have coordinated their trades to increase both the share price and trading volume.
Stockbroker’s Role Being Examined
SEBI has ordered a detailed investigation into the matter and is separately examining the role of the stockbroker.
In its interim order, the regulator directed the stockbroker to disgorge ₹82.56 lakh in alleged wrongful gains earned from the transactions. SEBI also observed that the timing of the stockbroker’s sale of holdings, shortly after a site inspection, raised concerns that alleged unlawful gains could be dissipated or diverted before the investigation is completed.
The matter remains under detailed investigation. SEBI is continuing to examine the alleged market manipulation, related financial transactions, the role of the stockbroker and the involvement of other individuals or entities.
