SEBI Freezes Assets, Restrains 39 Individuals Over Alleged Manipulative Trading in RRP Semiconductor Case

SEBI Takes Action Following Explosive Price Surge in RRP Semiconductor Shares​

The Securities and Exchange Board of India (SEBI) has issued an interim order, taking significant punitive action against multiple individuals and entities. The regulator has restrained 39 individuals, including Rajendra Kamalakant Chodankar, from accessing the securities market. This action centers on the trading activities and share price movement within RRP Semiconductor Limited.

SEBI further directed the impounding of nearly Rs 2 crore, citing alleged unlawful gains made during the period under review. The investigation was prompted by a preliminary examination into the sharp and dramatic movement in the company's share price and trading patterns.

Unpacking the Meteoric Rise of RRP Semiconductor​

SEBI's review highlighted an extraordinary price appreciation for the stock. The share price reportedly surged from Rs 15 in April 2024 to reach Rs 10,887.10 by October 2025. This staggering climb represents a nearly 725-fold increase over a mere 19 months.

During this highly volatile period, the company underwent a significant structural change. It transitioned from its original identity as G D Trading and Agencies Ltd. to focus specifically on the semiconductor business. Furthermore, the company executed a preferential allotment of approximately 1.35 crore shares at a price of Rs 12 per share.

Key Shareholders and Allegations of Coordination​

Following the preferential allotment, the promoter shareholding declined to 1.28 percent. Conversely, the public shareholding reportedly increased to 98.72 percent. Rajendra Kamalakant Chodankar was noted as the largest preferential allottee, acquiring 1.01 crore shares, which accounted for about 74.5 percent of the expanded share capital.

SEBI classified Chodankar as a public shareholder according to disclosures. The regulator pointed to recorded statements suggesting that Chodankar was instrumental in bringing several investors into the preferential allotment process. Call detail record analysis revealed observable connections between Chodankar and multiple other allottees.

Regulators Cite Evidence of Manipulative Activity​

The investigation uncovered evidence of coordinated actions through financial records. SEBI observed that certain entities were significant contributors to the last traded price (LTP) of the scrip. Moreover, several preferential allottees appeared to be interconnected, as evidenced by their call records and financial transactions.

Based on these cumulative findings, the regulator indicated prima facie signs of possible manipulative trading and coordinated market activity. The order specifically names top LTP contributors like Multiplier, Neo, and Pace regarding their direct market influence.

Specific Violations Detailed in the Interim Order​

In the interim order, SEBI’s Whole Time Member Amarjeet Singh detailed multiple specific violations. The order pointed fingers at the preferential allottees, promoters/directors (including Ms. Ira Mishra, Ms. Sumita Mishra, and Mr. Ramesh Mishra), and the top 3 LTP contributors (Multiplier, Neo, and Pace).

Additionally, individuals responsible for making trading decisions on their behalf were named, such as Mr. Chetan Rasiklal Shah, Mr. Bhavin Y Mehta, Mr. Nikhil Gupta, and Mr. Atul Goel. The order stated these parties prima facie violated specific clauses of the SEBI Act and related regulations.

Immediate Restrictions and Asset Freezing Orders​

Under the operative provisions of the order, the involved entities have been immediately restrained. They are prohibited from buying, selling, or otherwise dealing in the securities of RRP Semiconductor. Furthermore, depositories have received directives to freeze RRP shares held within the demat accounts.

The impounding order specified that alleged unlawful gains totaling about Rs 2 crore must be accounted for. Specific amounts were earmarked for different entities, including Rs 59.47 lakh linked to Multiplier Share & Stock Advisors Pvt. Ltd., Rs 1.26 crore to Pace Stock Broking Services Pvt. Ltd., and Rs 14.66 lakh to Neo Apex Venture LLP.

Compliance Mandate Issued for Concerned Parties​

To enforce the restrictions, SEBI also ordered a freeze on debits from the bank and demat accounts belonging to the concerned entities. These entities have been granted a window of 21 days to file any replies or objections regarding the interim order issued by the regulator.