Econo Trade India Ltd. has informed stock exchanges that it received a Final Order dated June 30, 2026, passed by the Securities and Exchange Board of India (SEBI) in the matter relating to Mauria Udyog Ltd. and four other scrips, wherein the company has been named as one of the noticees. The company stated it is examining the contents of the order in consultation with its legal advisors to understand the legal, regulatory, and financial implications arising therefrom.

Background of the SEBI Final Order

SEBI passed an Interim Order-cum-Show Cause Notice dated June 19, 2023 against Mr. Hanif Shekh and 225 other entities for alleged involvement in a scheme of price and volume manipulation across five scrips: Mauria Udyog Ltd. (MUL), 7NR Retail Ltd. (7NR), Darjeeling Ropeway Company Ltd. (DRCL), GBL Industries Ltd. (GBL) — listed on BSE — and Vishal Fabrics Ltd. (VFL), listed on both BSE and NSE. The Final Order, running 394 pages, was issued under Sections 11(1), 11(4), 11(4A), 11B(1), and 11B(2) of the SEBI Act, 1992.

According to SEBI's investigation, the scrips did not have noteworthy liquidity before the commencement of the alleged scheme, and the respective companies did not have major corporate announcements or substantial improvement in operational performance during the investigation period. The scrips witnessed abnormal price and volume fluctuations during respective periods from 2017 to 2020.

Alleged Scheme and Key Findings

SEBI alleged that the fraudulent scheme was executed in three structured phases:

• Phase 1 – Price and Volume Inflation: Groups of connected entities, termed 'PV Influencers', executed structured and synchronised trades to artificially inflate price and volume in the respective scrips.
• Phase 2 – Bulk SMS Circulation: Mr. Hanif Shekh allegedly circulated buy recommendations through bulk SMSes and websites such as www.midcapgains.in and www.mbstocks.in , using sender IDs mimicking reputed brokers such as Zerodha Broking Ltd. and ICICI Securities.
• Phase 3 – Offloading and Fund Routing: Entities connected to Mr. Hanif Shekh or to the respective company promoters offloaded shares at inflated prices, with alleged unlawful gains of ₹143.79 crore routed through multiple conduit entities.

The volume spike during the SMS circulation periods across the five scrips is summarised below:

Role of Econo Trade India Ltd.

Econo Trade India Ltd. was categorised under Sub-Group 5 in the Interim Order — entities described as ultimately receiving sale proceeds of the offloaders. SEBI's investigation found that the parents of Mr. Hanif Shekh held majority shareholding in Econo Trade and were directors of the company during the investigation period. The order noted that multiple Sub-Group 3 entities (Kolkata-based offloaders) held more than 1% shares each in Econo Trade, and that fund transfers from Sub-Group 5.A conduit entities — including Nilratan Suppliers Pvt. Ltd. and Kanungo Financiers Ltd. — were routed to Econo Trade.

Econo Trade submitted that its fund transactions with related entities were in the ordinary course of business as an RBI-regulated NBFC and were reflected in its income tax filings. SEBI, however, found the loan agreements submitted by Econo Trade to be inconsistent and lacking credibility, noting discrepancies such as mismatched loan amounts and unstamped documentation.

SEBI Directions

The Final Order directed the following against the Noticees:

The debarment period is to be set off against the period of restraint already undergone pursuant to the Interim Order dated June 19, 2023. The disgorgement amounts are to be remitted to the Investor Protection and Education Fund (IPEF).

Company's Response

Econo Trade India Ltd., in its intimation to the stock exchange dated July 7, 2026, stated that it is presently examining the contents of the Final Order in consultation with its legal advisors, advocates, and other professional experts to understand and interpret the findings and to ascertain the exact legal, regulatory, and financial implications, including the monetary implications on the company. The company reaffirmed its commitment to complying with all applicable laws and regulatory requirements and stated that further disclosures will be made as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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

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