Econo Trade explains late intimation of SEBI order

Econo Trade (India) Limited has addressed the delay in intimating a Final Order from the Securities and Exchange Board of India (SEBI), attributing the lapse to technical issues. The company received the order, bearing reference WTM/AS/IVD-2/ID16/32460/2026-27, via email on July 1, 2026, but the communication was routed to the spam folder due to firewall filters. The disclosure was eventually submitted to the stock exchange on July 7, 2026, following a routine server review.

Background of the SEBI Final Order

The Final Order dated June 30, 2026, was passed against 226 entities, including Econo Trade, in a matter relating to Mauria Udyog Ltd. and four other scrips. SEBI's investigation alleged a scheme of price and volume manipulation executed between 2017 and 2020 across Mauria Udyog Ltd., 7NR Retail Ltd., Darjeeling Ropeway Company Ltd., GBL Industries Ltd., and Vishal Fabrics Ltd. The regulator found that the scrips witnessed abnormal price and volume fluctuations without corresponding corporate announcements or operational improvements.

Alleged Manipulation Scheme

SEBI outlined a three-phase fraudulent scheme involving price inflation, bulk SMS circulation using sender IDs mimicking reputed brokers, and offloading shares at inflated prices. The investigation noted that unlawful gains of ₹143.79 crore were routed through multiple conduit entities. Econo Trade was categorised under Sub-Group 5, described as entities ultimately receiving sale proceeds. The regulator found that loan agreements submitted by the company were inconsistent and lacked credibility.

Penalties and Directions

The Final Order directed various debarment periods and monetary penalties against the noticees. Econo Trade, classified as a Hanif-controlled entity (Noticee 3 to 7), faces a 6-year debarment from the date of the order and a monetary penalty of ₹2 crore. Other entities received penalties ranging from ₹5 lakh to ₹10 crore, depending on their level of involvement. The order also mandated disgorgement of unlawful gains with 12% per annum simple interest from October 21, 2020.

Direction	Details
Debarment – Noticee 1 (Mr. Hanif Shekh)	7 years from date of order
Debarment – Noticees 3 to 7 (including Econo Trade)	6 years from date of order
Monetary Penalty – Noticee 1	₹10 crore
Monetary Penalty – Noticees 3 to 7	₹2 crore each
Disgorgement Interest Rate	12% per annum simple interest from October 21, 2020

Company's Response and Corrective Action

In its explanation to the Bombay Stock Exchange, Siddharth Sharma, Company Secretary & Compliance Officer of Econo Trade, stated that the delay was unintentional and resulted from the email being trapped in the spam/junk folder. The company has whitelisted SEBI domain addresses on its servers to ensure future compliance. Econo Trade reiterated that it is examining the order's contents with legal advisors to understand the full legal and financial implications.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.93%	0.0%	-15.01%	-6.43%	-28.41%	+20.98%

Econo Trade (India) Limited reported a net profit of ₹217.81 lakh for the financial year ended March 31, 2026, a decrease from ₹226.22 lakh in the previous year. Revenue from operations for FY26 stood at ₹591.89 lakh, down from ₹642.30 lakh in FY25. The Board of Directors approved the audited standalone financial results for the fourth quarter and financial year ended March 31, 2026, at a meeting held on May 30, 2026.

For the quarter ended March 31, 2026, the company recorded a net profit of ₹32.67 lakh, compared to ₹70.95 lakh in the corresponding quarter of the previous year. Revenue from operations for Q4FY26 was ₹166.47 lakh, a decline from ₹240.11 lakh in Q4FY25. The total income for the quarter was ₹167.52 lakh, while total expenses amounted to ₹122.55 lakh.

Key Financial Metrics

Metric	FY26 (₹ Lakhs)	FY25 (₹ Lakhs)
Revenue from Operations	591.89	642.30
Total Income	595.89	645.90
Total Expenses	305.49	340.68
Net Profit	217.81	226.22
Basic EPS (Rs.)	1.17	1.21

The company's finance costs for FY26 increased to ₹204.51 lakh from ₹244.12 lakh in the prior year, while employee benefits expense rose to ₹18.84 lakh from ₹14.13 lakh. The statutory auditors, M/s. H S K & CO LLP, issued an un-modified opinion on the audited standalone financial results.

Board Decisions

In addition to the financial results, the Board approved the appointment of Mr. Sourabh Jalan (Membership No. 307583), Partner of M/s. G. Goenka & Co., Chartered Accountants, as the Internal Auditor of the company for the financial year 2026-27. The appointment follows the recommendations of the Audit Committee. The meeting was conducted pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE937K01014/68e402db-34ce-4c38-993c-f574a89d6772.pdf