The Securities and Exchange Board of India (SEBI) has passed an interim order restraining 39 individuals and entities, including Rajendra Kamalakant Chodankar, from accessing the securities market in connection with alleged irregularities in RRP Semiconductor Limited. The regulator has also ordered the impounding of nearly Rs 2 crore in suspected unlawful gains.
The action follows a preliminary probe into the extraordinary surge in the company's share price, which skyrocketed from Rs 15 in April 2024 to Rs 10,887.10 by October 2025, a staggering 725-fold increase within 19 months.
During this period, the company transitioned from its earlier identity as G D Trading and Agencies Ltd. to a semiconductor-focused entity and carried out a preferential allotment of around 1.35 crore shares at Rs 12 apiece. Post-allotment, promoter holding fell sharply to 1.28%, while public shareholding rose to 98.72%.
SEBI noted that Chodankar emerged as the largest allottee, receiving 1.01 crore shares, or 74.5% of the expanded capital, despite being classified as a public shareholder. The regulator cited evidence including call detail records and financial transactions indicating links between Chodankar and several allottees, suggesting coordinated activity.
The order also highlighted that certain entities played a significant role in influencing the last traded price (LTP) of the stock, pointing to prima facie signs of manipulative trading.
SEBI has barred the entities from dealing in the company's securities and directed depositories to freeze their holdings. It has also impounded alleged gains, including Rs 59.47 lakh from Multiplier Share & Stock Advisors Pvt. Ltd., Rs 1.26 crore from Pace Stock Broking Services Pvt. Ltd., and Rs 14.66 lakh from Neo Apex Venture LLP.
The entities have been given 21 days to respond to the findings.
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