From ₹15 to ₹10,887: SEBI Flags Scheme To Inflate RRP Semiconductor Shares, Bars 39 Entities From Market

The Securities and Exchange Board of India has found what appears to be a coordinated scheme to artificially inflate the share price of RRP Semiconductor Ltd. It has restrained 39 entities from accessing the securities market and dealing in securities.

Whole Time Member Amarjeet Singh, in an interim order dated April 10, 2026, said, “The magnitude and speed of the price rise, together with the absence of any positive change in financials/business plans of the Company, are strongly indicative of manipulation in the scrip of RRP.”

The case stems from an extraordinary rise in the company's share price from Rs 15 in April 2024 to Rs 10,887 by October 2025, a 725-fold jump in 19 months. During this period, control of the company changed hands, and it issued over 1.35 crore shares at ₹12 each through a preferential allotment.

This sharply altered the shareholding pattern, reducing promoter holding to just 1.28 percent while public shareholding rose to 98.72 percent. Shares were then spread through off-market transfers in very small quantities across multiple accounts, after which trading activity picked up despite the company showing weak financial performance and no significant business developments.

The regulator noted that Rajendra Chodankar, who received over one crore shares amounting to 74.5 percent of the expanded capital, also funded several other allottees. It found links between multiple entities through call records and financial transactions, suggesting they were not acting independently.

A set of connected trading entities placed aggressive buy orders at upper circuit prices and contributed significantly to the rise in price, while shares were sold in very small lots from accounts that had received them through off-market transfers.

“The facts and circumstances of the present case, as discussed in the foregoing paragraphs, prima facie indicate the existence of a coordinated scheme involving promoters / directors of RRP, preferential allottees, off-market transferees and a set of trading entities, to artificially inflate the price of the scrip of RRP Semiconductor Limited.,” the order said.

Holding that immediate intervention was necessary to prevent further misuse of the market, SEBI barred the entities from buying or selling securities and directed the freezing of their demat accounts, while granting them an opportunity to respond to the interim order.

Additionally, the depositories are directed to freeze their demat holdings and ordered the impounding of nearly Rs. 2 crore in alleged unlawful gains, along with restrictions on the disposal of assets.

The entities were allotted 21 days to file their replies and objections to the interim order.