FILE PHOTO: SEBI has barred EKI Energy Services MD Manish Kumar Dabkara from the securities market for 12 months over financial misrepresentation and fund diversion. | Photo Credit: HEMANSHI KAMANI

Markets regulator SEBI has barred EKI Energy Services Ltd and its Managing Director Manish Kumar Dabkara from the securities market for two months and 12 months, respectively, for misrepresenting financial statements of the carbon credits trading firm and diverting funds.

Also, the regulator has restrained the company’s 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 prohibited for five months and one month, respectively.

Besides, SEBI has imposed monetary penalties totalling Rs 88 lakh on the company and other individuals for various violations of securities market regulations.

Further, the markets regulator directed Dabkara to take immediate steps to recoup the amount diverted from EKI Energy Services.

Premature revenue recognition and financial misrepresentation

In its 94-page final order, SEBI noted that EKI had prematurely recognised revenue aggregating Rs 197.04 crore during the first three quarters of FY23, thereby misrepresenting its financial performance to investors.

The regulator observed that “EKI’s publication and continued disclosure of prematurely recognised revenue of Rs 197.04 crore constituted reckless financial misrepresentation connected with investor decisions concerning its listed shares”.

Also, the regulator found that EKI had overstated expenses by Rs 26.34 crore during FY22 and FY23, resulting in an understatement of its 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 “booked fictitious expenses against services not rendered”, adding that payments made against such expenses “consequently constituted diversion of EKI’s funds”.

Directors held liable; penalties imposed

Also, SEBI noted that Dabkara was responsible for the continued disclosure of misstated financial information and failure to ensure proper monitoring of the company’s financial reporting systems. Also, the regulator held Sharma, Sheikh, and Agarwal liable for regulatory violations.

SEBI imposed a 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. It levied a fine of Rs 2 lakh on Sahu and Rs 4 lakh each on Gupta and Burhanuddin Ali Husain Maksi Wala.

The entities have been directed to pay the penalties within 45 days.

Published on October 31, 2026