The Securities and Exchange Board of India (SEBI) has imposed a five-year ban on Gujarat-based Seacoast Shipping Services Ltd. (SSSL) and its promoters from accessing the capital markets, following allegations of fraudulent activities. The regulator has also ordered the company to “disgorge” unlawful gains totaling ₹47.89 crore.
In a detailed 187-page order released on Wednesday, SEBI confirmed the allegations against SSSL, noting that the company, registered in Ahmedabad and incorporated in 1982, published misleading financial statements for the fiscal years 2021, 2022, and 2023, as well as for the period from April 1, 2023, to December 31, 2023. As of September 25, 2024, SSSL had a market capitalization of ₹272.57 crore and primarily engaged in shipping and logistics services.
SEBI’s findings revealed that over 85% of the sales reported by the company and more than 98% of its assets during the specified fiscal years were deemed non-genuine. The order emphasized, “The act of misstatement/misrepresentation of financial statements and publishing of the same portrayed an image of the company that was not true or fair.” This misrepresentation hindered investors’ timely assessment of the company’s financial health and was accompanied by violations related to fund diversion and corporate governance.
Furthermore, SEBI found that the proceeds from a rights issue were not utilized for their intended purposes but were instead diverted from SSSL. SEBI indicated, “As a result of the misrepresented financials, there has been considerable spike in retail investor interest in the company’s shares, while the promoters divested almost their entire stake during the investigation period.”
The article was published on September 25, 2025.
