FILE PHOTO: SEBI has banned EKI Energy Services MD Manish Kumar Dabkara from the securities market for 12 months for financial misrepresentation and diversion of funds. | Photo Credit: HEMANSHI KAMANI
Market regulator SEBI has banned EKI Energy Services Ltd and its Managing Director Manish Kumar Dabkara from the securities market for two months and 12 months, respectively, for misrepresenting the company’s financial statements of trading carbon credits and shifting funds.
In addition, the regulator has barred former Chief Financial Officer (CFO) Mohit Kumar Agarwal from the securities market for eight months, while whole-time directors Naveen Sharma and Sonali Sheikh have been banned for five months and one month respectively.
In addition, SEBI has imposed monetary penalties totaling Rs 88 lakh on other companies and individuals for various violations of securities market regulations.
Furthermore, the market regulator directed Dabkara to take immediate steps to recover the amount diverted from EKI Energy Services.
Premature revenue recognition and financial misrepresentation
In the final 94-page order, SEBI noted that EKI had prematurely recognized revenue aggregating Rs 197.04 crore during the first three quarters of FY23, thereby misrepresenting its financial performance to investors.
The regulator noted that “EKI’s publication and continued disclosure of prematurely recognized revenue of Rs 197.04 crore is a reckless financial misrepresentation related to the investor’s decision on listed shares”.
Also, the regulator found that EKI has overstated expenses by Rs 26.34 crore during FY22 and FY23, resulting in understatement of profits.
“The company diverted Rs 26.34 crore by overstating expenses during 2021-22 and 2022-23,” the order said.
The regulator noted that EKI had “ordered fictitious fees for services that were not provided”, adding that the payments made for these fees “are now a diversion of EKI funds”.
Directors are responsible; punishment is imposed
Also, SEBI noted that Dabkara was responsible for the continuous disclosure of incorrect financial information and failure to ensure monitoring of the company’s financial reporting system. In addition, the regulator held Sharma, Sheikh, and Agarwal accountable for violating regulations.
SEBI imposed penalty of Rs 12 lakh on EKI Energy Services, Rs 28 lakh on Dabkara, Rs 13 lakh on Sharma, Rs 6 lakh on Sheikh and Rs 19 lakh on Agarwal.
SEBI also imposed monetary penalties on independent directors Ritesh Gupta and Burhanuddin Ali Husain Maksi Wala, besides former compliance officer Itisha Sahu. A fine of Rs 2 lakh on Sahu and Rs 4 lakh each on Gupta and Burhanuddin Ali Husain Maksi Wala.
The entity was directed to pay the fine within 45 days.
Published on October 31, 2026