In a 47-page interim order issued on Friday, the securities market watchdog restricted the company’s promoters/directors Ira Mishra, Sumita Mishra and Ramesh Mishra, three entities viz. Multiplier Share & Stock Advisors Pvt. Ltd, Pace Stock Broking Services Pvt. Ltd and Neo Apex Venture LLP along with 33 others from buying and selling the stock.
While directing depositories NSDL and CDSL to freeze the equity shares of RRP in the demat accounts of the accused, Sebi also ordered the impounding of approximately Rs 2 crore made as “unlawful gains” by the three entities.
Incorporated in 1980 and formerly known as G D Trading and Agencies, the company was engaged in trading investment and trading activities. The smallcap stock has a market capitalization of Rs 13,265 crore on the BSE.
The regulator ordered a preliminary examination against the company for alleged unfair trading practices undertaken during the period between April 2, 2024 and October 31, 2025. However, Sebi also made references outside this period, the order said.
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Sebi investigation
The Sebi examination revealed that several entities involved in the off-market transfers were connected through calls, fund transfers or common addresses.
“The trading pattern, scale of price increase, and interconnectedness of entities reflect a level of planning and coordination that is inconsistent with independent trading behaviour. The magnitude and speed of the price rise, together with the absence of any positive change in financials / business plans of the Company, are strongly indicative of manipulation in the scrip of RRP,” the order read.
The order also noted shareholding of promoters reduced from 74.5% to 1.28% after the preferential allotment 1,35,25,000 shares to 31 entities following shareholders’ approval at the EGM held on May 27, 2024.
The order further noted a significant mismatch between the company’s financials and the surge in share price. “While the financials exhibited a steady deterioration over the quarters of 2025, the share price of RRP surged from Rs 185.50 on January 1, 2025 to Rs 10,887.10 on October 31, 2025, representing an increase of over 58 times,” the order added.
Top contributors to last traded price (LTP) gains have already exited their positions, booking significant profits. Meanwhile, there has been a sharp surge in the number of public shareholders, suggesting that retail investors were drawn into the stock at elevated and possibly inflated prices.
The shareholder base expanded rapidly—from just 55 investors in March 2024 to over 1,200 by February 2026—despite regulatory measures. This steady rise indicates continued retail participation even as earlier investors exited.
Additionally, the order noted investor interest appeared to have been fueled by misleading and unverified information circulating on social media. Rumours around high-profile associations, large land allotments, and industry recognition created a positive narrative, which the company itself later acknowledged and clarified as misleading.
BSE has already restricted trading in RRP Semiconductor. Its last traded price was Rs 9,736.40 on March 30, 2026.
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