SEBI bans SME firm Kalahridhaan Trendz, promoters from securities market

FPJ News Service mumbai

The Securities and Exchange Board of India (SEBI) on Monday barred SME company Kalahridhaan Trendz and its promoters from the securities markets for flouting disclosure rules. Kalahridhaan Trendz Ltd (KTL) is listed on the NSE’s SME platform Emerge. Apart from KTL, the promoters— Niranjan D Agarwal, Aditya N Agarwal, and Sunita Niranjan Agarwal—were also restrained from markets till further orders, SEBI said in an interim order-cum-show cause notice.

Market regulator also directed KTL and its promoters to show cause as to why suitable directions of debarment should not be issued against them. The order came after SEBI received certain complaints from HDFC Bank against KTL regarding default in payment of credit card dues. Thereafter, the markets watchdog initiated an examination in the matter to ascertain the violation of various SEBI rules.

The examination was conducted from February 23, 2024 to December 15, 2024. The regulator found that KTL is prima facie found to have failed to make material disclosures regarding its default in repayment of its dues to HDFC Bank.

Further, the company is prima facie found to have made false and misleading corporate announcements regarding its expansion/profitability and receipt of a large buy order from a fictitious entity from Bangladesh, the regulator said. In response to regulatory enquiries regarding the same, it has tried to cover its track by fabricating e-mail communications.

The false and misleading corporate announcements positively affected the price and trading volume in the scrip, it added. SEBI noted that it appears that the KTL had made the corporate announcements to paint a rosy picture of the prospects of the company and to induce investors to trade in the shares of the company.