The Securities and Exchange Board of India (SEBI) has initiated search operations at the premises of the promoter-directors of R M Drip and Sprinklers Systems Limited and R&B Denims Limited, according to filings made by the companies. The searches took place on April 22 and 23, 2026, following an order issued by a Special Judge under Section 11C(9) of the SEBI Act, 1992, commencing early on April 22 and continuing into the early hours of the subsequent day.
R M Drip and Sprinklers Systems Limited stated that these actions are part of ongoing regulatory proceedings, but it has not yet been informed of any specific violations. The company asserted that the developments currently have “no material impact” on its financial situation, operations, or other activities, and it will provide further information as required under listing norms.
In a similar vein, R&B Denims issued a disclosure noting that searches were conducted at the premises of its promoter-directors under the same legal provisions.
Sources familiar with the situation suggested that the searches are linked to an ongoing investigation regarding potential stock price manipulation and alleged pump-and-dump schemes involving certain SME-listed stocks; however, no formal conclusions have been disclosed to date.
The search operations took place at multiple locations, with officials seizing documents and electronic records believed to be relevant to the investigation. Despite the scrutiny, no formal charges or findings have been publicly announced.
These developments occur in a context of increased regulatory oversight of SME platform listings, particularly amid significant price fluctuations and unusual trading patterns that have attracted the attention of market regulators in recent months.
The article was published on April 27, 2026.
