Securities and Exchange Board of India has begun a probe into Kapil Raj Finance, a Delhi based non‑banking financial company, over suspected pump and dump activity in its shares. Officials searched six locations including Mumbai, Delhi and Thane to collect evidence of possible manipulation.
The regulator is checking if retail investors were misled into buying shares at inflated prices before operators exited. Neelesh Kumar Lahoti is among those under investigation. SEBI is reviewing preferential issues, share allotments and corporate actions linked to the company.
Kapil Raj Finance raised funds in February 2023 by issuing 58 lakh convertible warrants at ₹12 each to six non‑promoter investors. These warrants were later converted into equity shares in April and October 2023. The company also announced a stock split in April 2025.
As of June 2026, public shareholding stood at 100%. Kuldeep Singh held 9.70% while Madhu Neelesh Kumar Lahoti owned 9.14%. Market sources suggest retail investors may have been drawn into trades at high valuations before operators booked profits.
SEBI has intensified its crackdown on market irregularities. In FY26, it took up 72 cases of price volume manipulation and 121 cases of fraudulent trade practices. The regulator has powers to freeze bank accounts, restrict market access and impound unlawful gains, showing its strong intent to safeguard investor interests and market integrity.
