SEBI Detects Alleged Coordinated Trading In Osiajee Texfab Shares After Rally

The Securities and Exchange Board of India (SEBI) has passed an ex-parte interim order against Osiajee Texfab Ltd (OTL), 19 connected entities and stock broker Shreni Shares Ltd, alleging a coordinated scheme involving artificial price inflation, synchronized trading and misleading disclosures. The market regulator claimed that the company’s shares witnessed an 842 per cent rally in just over a year due to activities that allegedly created artificial demand in the stock.

According to SEBI’s findings, Osiajee Texfab’s share price increased from Rs 50.4 on January 30, 2025, to Rs 474.8 on January 27, 2026. The regulator said the sharp rise was inconsistent with the company’s business performance, noting that OTL’s textile operations reported a significant decline in revenue over several financial years. The company’s textile revenue reportedly fell from Rs 2.06 crore in FY22 to almost negligible levels in subsequent years.

SEBI stated that most of the company’s consolidated revenue and profits came from its wholly owned subsidiary, Osiajee Agro Farms Ltd, which is involved in eucalyptus and poplar plantation activities. During a surprise inspection, OTL Managing Director Reema Saroya allegedly informed investigators that the company had no active textile operations and that income was primarily generated through the subsidiary. The regulator also questioned company disclosures that described the textile business as growing despite limited operational evidence.

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The regulator’s investigation highlighted alleged irregularities in trading patterns surrounding the stock’s rally. SEBI found that the top 10 traders contributed 67.38 per cent of the positive last traded price movement between April 30 and May 14, 2026. These traders had accounts with the Hoshiarpur branch of Shreni Shares Ltd, which was managed by the husband of OTL’s managing director. SEBI also noted links between the broker branch, OTL and another related entity operating from the same residential premises.

During inspections, SEBI officials reportedly found a lack of supporting business records, including invoices, inventory details, stock records and evidence of operational activity. The regulator further identified 516 alleged synchronized trades worth Rs 3.92 crore, including several transactions executed within one minute with matching buy and sell prices. SEBI said these patterns indicated possible coordination among market participants.

SEBI has alleged that Shreni Shares Ltd sold its entire OTL shareholding shortly after the regulator’s inspection and earned gains of Rs 82.57 lakh. The broker has been directed to place an equivalent amount in a fixed deposit with a lien in favour of SEBI. Pending completion of a detailed investigation, the regulator has restrained the company, connected entities and individuals involved from trading in OTL shares, stating that the available evidence suggests a possible attempt to create artificial demand, influence prices and mislead investors.

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