Quick Summary
SEBI’s final order dated August 28, 2026 found Debock Industries Limited and its Managing Director Mukesh Manveer Singh ran a scheme of fake preferential shares, inflated sales and purchases, and forged bank statements between FY22 and FY24.
Debock and Mukesh Manveer Singh are barred from the securities market for 7 years. Three aides face 2 to 5 year bans. Together, the order directs over ₹137 crore in disgorgement, penalty and refunded rights issue money.
A final order finds Debock Industries inflated its books with fake sales, fake preferential shares and forged bank statements to climb onto NSE’s main board, then diverted ₹49 crore of rights issue money.
Twenty-nine people and entities were investigated. Eleven were held responsible.
How Did This Case Start?
Debock Industries Limited began life as Debock Sales and Marketing Limited, listed on NSE’s Emerge platform for small companies in 2018.
SEBI’s final order says that under Managing Director Mukesh Manveer Singh, the company used a series of fictitious transactions to inflate its size on paper.
That inflated picture is what let it migrate from the Emerge platform to NSE’s main board.
The same pattern allegedly continued afterward, through further preferential share issues, a bonus issue and a rights issue, before SEBI stepped in.
An interim order dated August 23, 2024 first froze market access for Debock, Singh, promoter Sunil Kalot and Priyanka Sharma.
SEBI confirmed those directions on December 11, 2024, then issued a show cause notice on September 15, 2025.
This final order, signed by SEBI Whole Time Member Amarjeet Singh on August 28, 2026, closes that investigation.
A Fictitious Share Issue Used to Reach the Main Board
SEBI’s order says Debock met the eligibility criteria for the main board through a preferential issue of warrants that was fictitious in nature.
In plain terms, the money supposedly paid for those warrants never actually came in.
The order describes circuitous transactions where the same funds moved in a loop between the company, Sunil Kalot and Mukesh Manveer Singh.
That loop created the appearance that allottees had paid for their shares, when they effectively hadn’t.
One example: a day before money was due, ₹30 lakh moved from an individual to Debock, then to Kalot, then to Singh, who used it to pay for the very same warrants.
That same ₹30 lakh was recycled repeatedly to show a total of ₹3.28 crore in application money that never actually existed.
Sales and Purchases Inflated Through Circular Transactions
The order finds Debock inflated its sales by around 72% in FY22 and around 77% in FY23.
Purchases were inflated by around 94% in both years.
This ran through circuitous transactions, where goods and money moved between related entities with no real underlying business.
That puffed up Debock’s revenue and asset base on its financial statements.
These inflated numbers fed into free reserves later used to justify a bonus share issue.
They also fed into a further preferential warrant issue in November 2023, converted to equity in February 2024, an issue that drew qualifications from the company’s own auditor.
Forged Bank Statements Shown to SEBI
To back up its fictitious transactions, the order finds that Debock submitted bank statements that didn’t match its actual banking records.
SEBI treats this as a deliberate attempt to hide the fictitious issues and inflated numbers from the regulator during its examination.
₹49.50 Crore Rights Issue, and Where the Money Went
In June 2023, after migrating to the main board, Debock raised ₹49.50 crore through a rights issue open to its shareholders.
The order finds that ₹49 crore of this moved out almost immediately, first to Impex Agrotech Limited.
Impex is a related party of Debock, where Singh and Jyoti Choudhary are majority shareholders.
From Impex, ₹25.07 crore passed on to Naturo IndiaBull Limited, run by Managing Director Gaurav Jain.
From Naturo, money moved further to entities including Bright Trading, Arvika Shipping and Arrowship Services, some of them overseas.
Naturo booked these transfers as advances, even though the firms did no real business with it.
Around ₹14 crore of the diverted money was still sitting in Impex’s account when the interim order was passed. SEBI has directed Debock to recover the rest.
The People SEBI Says Ran the Scheme
SEBI’s order describes Mukesh Manveer Singh, the Managing Director, as the person at the helm of the entire scheme.
That runs from the fictitious preferential issue all the way to the diversion of rights issue money.
Sunil Kalot, a promoter of Debock, is found to have aided the fictitious allotments.
Shares issued without real consideration were transferred to him off market. He sold them along with his own holding for an unlawful profit of ₹37.66 crore.
Priyanka Sharma is found to have acted as a conduit for diverting the rights issue proceeds.
The order also examines a separate transaction where Singh gifted shares worth ₹17.39 crore to Gaurav Jain, without any payment or genuine reason for the gift.
Jain then sold these shares. Since the order couldn’t establish who the real beneficiary was, it holds both of them jointly and severally liable for the ₹17.39 crore.
What the CFO and CEO Were Held Responsible For
Nishu Goyal was Debock’s Chief Financial Officer through FY22, FY23 and FY24.
Vandana Patidar was Chief Executive Officer during FY22, before resigning in October 2022.
Listing rules require the CEO and CFO to certify that a company’s financials are accurate and not misleading.
The order finds both signed such certifications during years when the fictitious issues and inflated numbers were happening, and holds them responsible on that basis.
As a mitigating factor though, neither Goyal nor Patidar is found to have personally pocketed any money from the scheme beyond their salary.
The Three Companies Used to Move the Money
Impex Agrotech Limited acted as the vehicle for routing Debock’s inflated sales and purchases, and as the first stop for the diverted rights issue money. It filed no reply to the show cause notice.
Naturo IndiaBull Limited received ₹25.07 crore of that money from Impex and passed it on further, including to entities with no real business relationship. It also didn’t respond to the notice.
Avance Ventures Private Limited was a preferential allottee in the second round of share issues.
The order finds it paid only ₹68 lakh of the funds it claimed to have transferred, with Debock itself funding the rest in a circular arrangement.
That genuine ₹68 lakh payment was enough for SEBI to hold that Avance participated in and benefited from the fraudulent allotment.
The 18 Noticees SEBI Let Off
Not everyone named in the show cause notice was held liable.
Five people connected to Debock’s board were investigated and cleared: independent directors Kailash Brahmabhatt, Arvind Rao and Sanjeeda Dagar, non-executive director Sonu Sharma, and former executive director Akash Kumar.
Thirteen individuals who subscribed to the company’s first round of preferential shares were also cleared, including Raju Ajmera, Abhishek Khandelwal and Najiya Bano, among others named in the order.
SEBI’s order says the record didn’t show that these 18 people knew about the fraudulent design or consciously helped carry it out.
Proceedings against all of them were closed without any direction or penalty.
Is Debock Industries a SEBI Registered Intermediary?
No. Debock Industries is a listed company whose shares trade on NSE, not a SEBI-registered intermediary such as a broker, research analyst or portfolio manager.
A company doesn’t need a SEBI intermediary registration to list its shares.
This order was passed under SEBI’s powers to protect investors and the securities market, using the PFUTP and LODR Regulations that apply to any listed company.
What the Final Order Actually Directs?
SEBI’s order under Sections 11(1), 11(4) and 11B(1) of the SEBI Act lays out a detailed set of directions.
Debock Industries must return the ₹49 crore diverted from its rights issue, with 12% interest from July 24, 2023, within 3 months.
Debock and Singh are barred from the securities market for 7 years. Singh is also barred from any director or key managerial role for the same period.
Sunil Kalot faces a 5-year market ban and director bar. Priyanka Sharma faces a 3-year ban on both counts.
Nishu Goyal, Vandana Patidar, Avance Ventures, Impex Agrotech, Naturo IndiaBull and Jyoti Choudhary get 2-year market bans, with Goyal, Patidar and Choudhary also barred from director roles for 2 years.
For Debock, Singh, Kalot and Sharma, who were already covered by the August 2024 interim order, their ban is counted from that interim date, not this final order.
That means Debock and Singh’s 7-year ban runs until August 23, 2031, and Kalot’s 5-year ban runs until August 23, 2029.
Gaurav Jain wasn’t part of the 2024 interim order, so his 3-year ban runs from this final order instead, until August 28, 2029.
Where the Money Is Supposed to Go?
Sunil Kalot, Mukesh Manveer Singh and Gaurav Jain together have to disgorge ₹59.30 crore in unlawful gains, with 12% interest, within 45 days.
Kalot’s share is ₹37.66 crore. Singh owes ₹4.24 crore individually, plus ₹17.39 crore jointly with Jain from the share gift proceeds.
This money goes to SEBI’s Investor Protection and Education Fund, not directly back to individual Debock shareholders.
Separately, SEBI has imposed monetary penalties on the 11 noticees found liable, adding up to ₹29.57 crore.
Singh’s penalty alone is ₹20.10 crore, the largest single amount. Debock as a company has been fined ₹1.10 crore.
Add the ₹49 crore return, the ₹59.30 crore disgorgement and the ₹29.57 crore in penalties, and this order’s combined value crosses ₹137 crore, before interest.
What This Means if You Hold or Were Considering Debock Shares
If you bought Debock shares based on its reported sales growth, its main board listing, or its bonus and rights issues, this order confirms a meaningful part of that picture was built on fictitious transactions.
The order itself doesn’t create a compensation mechanism for shareholders who bought at inflated prices.
The disgorged amount goes to SEBI’s investor protection fund, not to individual claim payouts.
Investors who believe they suffered a specific, quantifiable loss because of Debock’s disclosures can still pursue their own remedies.
If You Ever Need to Complain About a SEBI Registered Entity
Debock Industries and the individuals named in this order were not registered intermediaries. So a direct SEBI intermediary complaint route doesn’t apply to this specific case.
But if you ever face an issue with a broker, adviser or portfolio manager, these are the official channels worth knowing.
SEBI’s own grievance portal is the place to start for any registered entity. You can raise it through the SCORES SEBI complaint portal.
Each type of intermediary also has its own dedicated process, depending on who you’re actually dealing with.
If your grievance is against a stockbroker specifically, here’s how to file complaint against stock broker the right way.
Paid stock tips and recommendations fall under a different regulatory bucket entirely.
For issues with a research analyst who charged you for calls, there’s a separate complaint against SEBI registered research analyst.
Investment advisers are regulated on their own track too, separate from brokers and analysts.
Problems with a registered investment adviser follow that track, and you can file complaint against an RIA to start it. Not every case fits neatly into one of these categories though.
For anything broader involving a SEBI registered intermediary, there’s also a general complaint against SEBI intermediaries route.
Report. Recover. Stay Fraud Free.
Frequently Asked Questions
SEBI's final order dated August 28, 2026 found that Debock Industries used a fictitious preferential share issue to migrate to NSE's main board, inflated its sales and purchases through circular transactions, submitted forged bank statements, and diverted ₹49 crore from a rights issue.
Debock Industries and Managing Director Mukesh Manveer Singh are barred from the securities market for 7 years, counted from the August 23, 2024 interim order, meaning the ban runs until August 23, 2031.
The order directs Debock to return ₹49 crore of diverted rights issue money with interest, orders ₹59.30 crore in disgorgement from three individuals, and imposes ₹29.57 crore in penalties, a combined value of over ₹137 crore before interest.
No. Only 11 of the 29 noticees were found liable and face directions or penalties. The other 18, including five former directors and 13 preferential share allottees, were investigated and cleared.
No. It is a listed company, not a SEBI registered broker, adviser or portfolio manager. This order was passed under the PFUTP and LODR Regulations that apply to listed companies.
The disgorged amount goes into SEBI's Investor Protection and Education Fund, not as direct compensation to individual shareholders. The order itself does not set up a payout mechanism for investors who bought shares at inflated prices.
He is the Managing Director of Debock Industries, whom SEBI's order identifies as having masterminded the fictitious share issues, inflated financials and diversion of rights issue proceeds, aided by Sunil Kalot, Priyanka Sharma and Gaurav Jain.
