Market regulator Securities and Exchange Board of India (SEBI) has taken decisive action in the matter of RRP Semiconductor Ltd, restraining 39 entities—including promoters, preferential allottees and key market participants for their alleged role in a scheme that drove the company’s share price up by an astonishing 725 times. SEBI action follows an extraordinary surge in the stock price from ₹15 in April 2024 to ₹10,887 by October 2025, which it says was completely disconnected from the company’s financial performance or underlying business fundamentals.
The regulator has barred these entities, which include promoters Ira Mishra, Sumita Mishra and Ramesh Mishra, along with trading entities Multiplier Share & Stock Advisors Pvt Ltd, Pace Stock Broking Services Pvt Ltd and Neo Apex Venture LLP and their key decision-makers, from buying, selling or dealing in the stock, directly or indirectly. SEBI has also directed depositories, such as National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL), to freeze the company's demat holdings.
In addition, the regulator has impounded alleged unlawful gains amounting to nearly ₹2 crore. This includes ₹59.47 lakh linked to Multiplier Share & Stock Advisors, ₹1.26 crore to Pace Stock Broking Services and ₹14.66 lakh to Neo Apex Venture LLP. The liability is joint and extends to associated individuals such as Chetan Rasiklal Shah, Atul Goel and Bhavin Y Mehta.
The list of other entities involved includes: Nikhil Gupta , Rajendra Kamalakant Chodankar, Vivek Gaur, Prachi Jain, Jyoti Poddar, Pooja Rohtagi, Ankur Bansal, Sachin Shetty, Leena Shetty, Tinu Sharma, Chirag Sachapara, Rajesh Tripathi, Atul B Chauhan, Savir Power & Automation Pvt Ltd, Bhaven Vasanji Gala, Satyajit Mishra, Rahul Sikaria, Avani Keniya, Sachapara Krupali Gaurav, Nitin Kasliwal, Rizwana Abdul Razak Nagarkar, Jyoti Ranjan Pradhan, Manish Kumar, Sarika Shet, Ashish Kumar Sharma, Mahadev Karbhari Bangar, Gurudatta Bhat, Trilochan Sharma, Somisetty Malathi Latha and Manoj Gupta.
The investigation indicates that the alleged scheme began after the takeover of the company earlier known as GD Trading and Agencies Ltd by promoter Ira Mishra. The company was repositioned as a semiconductor business and undertook a preferential allotment of over 1.35 crore shares at ₹12 apiece. This led to a dramatic shift in shareholding, with promoter stake collapsing and public shareholding rising sharply.
A substantial portion of the shares was concentrated in the hands of a single investor, Rajendra Chodankar, who emerged as a key figure in the transactions. SEBI found evidence suggesting that he financed several other allottees, with funds traced back to the company’s own subscription account raising serious questions about the genuineness of the capital infusion.
The regulator also flagged a pattern of off-market transfers in extremely small quantities to a wide network of individuals. These shares were then sold in tiny lots, often at upper circuit levels, indicating a possible attempt to create artificial trading activity and sustain the upward price movement.
Further, three entities, namely, Multiplier Share & Stock Advisors, Pace Stock Broking Services and Neo Apex Venture LLP, were found to have played a key role in pushing up prices. Together, they accounted for nearly two-thirds of the positive price movement through aggressive buy orders placed at upper circuit levels. Many of these large orders were repeatedly cancelled, suggesting they were intended to influence market sentiment rather than execute genuine trades.
SEBI noted that the company’s financials did not support the sharp rise in its share price. After a brief improvement following the preferential issue, the company’s performance deteriorated significantly, with revenues turning negative and no operational income reported in the latest quarter. The company itself admitted that the price rise was not backed by fundamentals.
Meanwhile, a sharp increase in the number of public shareholders indicated that retail investors may have entered the stock at inflated levels. SEBI also pointed to the spread of unverified information and rumours on social media, which may have further fuelled investor interest.
The regulator has cautioned that, without timely intervention, preferential allottees who acquired shares at negligible prices could have exited at artificially inflated levels after the lock-in period, leaving retail investors exposed.
SEBI’s prima facie findings suggest a coordinated scheme involving preferential allotment, structured share distribution, synchronised trading and artificial price escalation. A detailed investigation is underway, and further regulatory action is likely. Investors have been advised to exercise extreme caution while dealing in such stocks.
