The Securities and Exchange Board of India (SEBI) has issued a final order against Seacoast Shipping Services Ltd. (BSE: SEACOAST) and its promoters, including Chairman and Managing Director Manish Shah, barring them from the securities market. The order also directs the impounding of over ₹84 crore in illegal gains and prohibits the company from raising any funds from the public.
The final order follows an extensive investigation that found the company and its promoters engaged in fraudulent activities. In the order, SEBI’s Whole-Time Member Ashwani Bhatia stated, “The whole gamut of these murky affairs in the company does not leave much scope to think of any coincidence but conclude that this was a pre-planned and efficiently executed fraud on the securities market by the company and its promoters.”
This final order followed an interim Order cum Show Cause Notice issued by SEBI on September 30, 2024. It laid out SEBI’s preliminary findings of alleged fraud and financial misrepresentation by the company and its promoters. At the time, the share price was at a 52-week high of around ₹7.49. Following the news of the ban and the allegations of fraud, the stock price plummeted, hitting a new 52-week low.
The final order on September 24, 2025, which confirmed the ban and imposed the heavy penalty, caused the stock to hit its lowest point yet, with its price currently hovering at ₹1.48. This marked a complete erosion of value from its previous highs, with the stock losing over 70% of its value in a single year.
SEBI’s investigation concluded that the company engaged in misrepresentation of financial statements, inflating revenues and booking fictitious sales and purchases, diverting company funds to related entities, executing fraudulent preferential allotments to promoter entities.
SEBI’s final order includes the following key penalties:
- The promoters and other entities involved have been ordered to impound over ₹84 crore in illicit gains.
- Manish Shah and other key figures are banned from accessing the securities market, either directly or indirectly, until further notice.
- The company is barred from raising any funds from the public, and the BSE has been instructed not to approve any rights issue applications.
The investigation originated from a report submitted by the Bombay Stock Exchange (BSE). The BSE’s examination found irregularities, particularly concerning related-party transactions. The report highlighted that around 61% of the company’s total revenue and 60% of its operating expenses during the 2020-21 fiscal year were from transactions with one related party—Manish Shah’s family business, which the company had taken over.
SEBI initiated a formal investigation after receiving this report to determine if the company’s books of accounts were manipulated and whether funds had been siphoned off. The probe revealed that the company had received only 37% of the cash it was supposed to have received from sales and debtor figures reported in its annual reports for a three-year period, pointing to fictitious transactions and a pre-planned fraud.
Disclaimer: This article is for informational purposes only and should not be considered as financial or investment advice. Always conduct your own thorough research, or consult with a qualified financial advisor before making any investment decisions. Stay informed about the latest market developments to protect your financial interests!
