Sebi bars EKI Energy, MD Dabkara, others from market; imposes penalty

Besides, Sebi has imposed monetary penalties totalling ₹88 lakh on the company and other individuals for various violations of securities market regulations. Further, the markets regulator directed Dabkara to take immediate steps to recoup the amount diverted from EKI Energy Services. In its 94-page final order, Sebi noted that EKI had prematurely recognised revenue aggregating ₹197.04 crore during the first three quarters of FY23, thereby misrepresenting its financial performance to investors.

The regulator observed that "EKI's publication and continued disclosure of prematurely recognised revenue of ₹197.04 crore constituted reckless financial misrepresentation connected with investor decisions concerning its listed shares". Also, the regulator found that EKI had overstated expenses by ₹26.34 crore during FY22 and FY23, resulting in an understatement of its profits. "The company diverted ₹26.34 crore by overstating expenses during 2021-22 and 2022-23," the order said.

The regulator noted that EKI had "booked fictitious expenses against services not rendered", adding that payments made against such expenses "consequently constituted diversion of EKI's funds". Also, Sebi noted that Dabkara was responsible for the continued disclosure of misstated financial information and failure to ensure proper monitoring of the company's financial reporting systems. Also, the regulator held Sharma, Sheikh, and Agarwal liable for regulatory violations.

Sebi imposed a penalty of ₹12 lakh on EKI Energy Services, ₹28 lakh on Dabkara, ₹13 lakh on Sharma, ₹6 lakh on Sheikh and ₹19 lakh on Agarwal. Sebi also imposed monetary penalties on independent directors Ritesh Gupta and Burhanuddin Ali Husain Maksi Wala, besides former compliance officer Itisha Sahu. It levied a fine of ₹2 lakh on Sahu and ₹4 lakh each on Gupta and Burhanuddin Ali Husain Maksi Wala.

The entities have been directed to pay the penalties within 45 days. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) Don't miss the most important news and views of the day. Get them on our Telegram channel First Published: Oct 31 2026 | 10:17 PM IST