SEBI restrains 19 in Osiajee Texfab share-manipulation matter
SEBI has passed an ex-parte interim order restraining 19 entities from dealing in Osiajee Texfab shares over an alleged price-manipulation scheme, per an order dated 9 July 2026.
The Enforcement Action
The Securities and Exchange Board of India (SEBI) has passed an ex-parte interim order restraining 19 entities from dealing in the shares of Osiajee Texfab Limited (OTL), a BSE-listed textile company based in Hoshiarpur, Punjab. The order, dated 9 July 2026 and bearing reference WTM/KM/IVD-1/ID17/32480/2026-27, was signed by Whole Time Member K.V.R. Murty under sections 11(1), 11(4) and 11B(1) of the SEBI Act, 1992.
Per the SEBI order, the 19 noticees are "restrained from buying, selling or dealing in securities of Osiajee Texfab Limited" until further orders. SEBI also directed one noticee, the stock broker Shreni Shares Limited, to deposit Rs. 82,56,861.58, described in the order as its wrongful gains, in a lien-marked fixed deposit within 15 days, with a debit freeze on its bank and demat accounts above that sum.
SEBI describes the matter as a "fraudulent and manipulative scheme" in the shares of OTL. The noticees include the company's Managing Director, Ms. Reema Saroya, her husband Mr. Akashdeep Jain, and Shreni Shares Limited. The findings are prima facie, and a detailed investigation has been directed.
Background
SEBI states it acted on a complaint alleging that OTL's directors were manipulating the share price with the help of a few stock brokers, and were "creating dummy demand for its shares". A preliminary examination followed.
The order records that OTL's share price rose from Rs. 50.40 on 30 January 2025 to Rs. 474.80 on 27 January 2026, then climbed a further 23.14% in seven trading days to touch an all-time intraday high of Rs. 495.50 on 12 May 2026. SEBI notes the company has a low investor base of about 2,872 shareholders and fewer than 100 unique daily traders. The regulator found that the top 10 contributors to the last traded price during 30 April to 14 May 2026 were all clients of the Hoshiarpur branch of Shreni Shares Limited, who had opened accounts from October 2025 onwards, and together accounted for 67.38% of the market's positive price impact.
SEBI also alleges the company made a misleading announcement on 13 May 2026 claiming its textile business was "growing steadily", while the order records that OTL's textile revenue was nil in 2023-24 and 2024-25 and negligible in 2025-26. On this basis it prima facie found violations of section 12A of the SEBI Act and the PFUTP Regulations, 2003. As an ex-parte order, it was passed without hearing the noticees, who have 21 days to file objections.
What It Means
For ordinary investors, the order is a reminder of how thinly-traded, low-float stocks can be moved. A steep, uninterrupted rise with no matching business performance, concentrated in a handful of accounts at a single broker branch, is the pattern SEBI describes here. Reading a company's actual revenue in its filings, rather than its announcements, is a first line of defence.
Investors can verify any intermediary independently. SEBI registration numbers for brokers and research analysts can be checked on the SEBI website, and BSE and NSE publish member details. An ex-parte interim order is a preventive, provisional measure that freezes activity pending investigation; it is not a final finding of guilt, and the named parties retain their rights to respond and appeal.
The direction to deposit alleged wrongful gains, rather than merely freeze accounts, signals that SEBI is moving to ring-fence money early. Such interim action does not compensate investors who have already bought in, which is why checking fundamentals before buying matters.
FAQ
What exactly did SEBI order?
SEBI restrained 19 named entities from dealing in Osiajee Texfab shares until further orders and directed the broker Shreni Shares Limited to place Rs. 82,56,861.58 of alleged wrongful gains in a lien-marked fixed deposit within 15 days, with a debit freeze on its accounts above that amount.
Does this mean the people named are guilty?
No. The order is an ex-parte interim measure based on prima facie findings, not a conviction. SEBI has directed a detailed investigation, and the noticees may file objections within 21 days before any final decision.
Can the order be appealed?
Yes. The noticees can respond to SEBI within 21 days, and orders of a Whole Time Member can be challenged before the Securities Appellate Tribunal (SAT), with a further appeal on questions of law.
How can I check if my broker is registered?
Use the SEBI website's registered-intermediary lookups, and cross-check broker membership on the BSE and NSE websites, before you act on any recommendation.
Where can I read the official order?
The full order is on SEBI's enforcement portal, with the detailed PDF order linked from the order page.
This report is based on the official SEBI ex-parte interim order dated 9 July 2026 in the matter of Osiajee Texfab Limited.