Sebi Bars EKI Energy for Two Months and MD Dabkara for 12 Over Misstated Accounts

Sebi has barred EKI Energy Services and Managing Director Manish Kumar Dabkara from the securities market for two months and 12 months respectively, and imposed penalties totalling ₹88 lakh, Business Standard reported on October 31, 2026. The order covers misrepresentation of the carbon credits trader's financial statements and diversion of funds.

What Sebi's 94-Page Order Found

In its 94-page final order, Sebi said EKI Energy Services recognised revenue of ₹197.04 crore prematurely during the first three quarters of FY23, misrepresenting its financial performance to investors. The regulator held that publishing and continuing to disclose that revenue "constituted reckless financial misrepresentation connected with investor decisions concerning its listed shares".

Sebi also found that EKI overstated expenses by ₹26.34 crore in FY22 and FY23, understating its profits, and that the company booked fictitious expenses against services not rendered. Payments against those expenses "consequently constituted diversion of EKI's funds", the order said, and Dabkara was directed to take immediate steps to recoup the diverted amount.

Former Chief Financial Officer Mohit Kumar Agarwal is barred for eight months, whole-time directors Naveen Sharma and Sonali Sheikh for five months and one month respectively. Sebi fined EKI ₹12 lakh, Dabkara ₹28 lakh, Sharma ₹13 lakh, Sheikh ₹6 lakh and Agarwal ₹19 lakh, with ₹4 lakh each on independent directors Ritesh Gupta and Burhanuddin Ali Husain Maksi Wala and ₹2 lakh on former compliance officer Itisha Sahu. The penalties are payable within 45 days.

EKI Energy's Carbon Credit Business

EKI Energy Services is a BSE-listed carbon credit developer and climate advisory firm based in Indore, supplying verified voluntary carbon credits, ESG and net-zero advisory and Article 6 capacity-building services, according to akta.pro company records. The same records describe EKI as founded in 2011 as EnKing International, with a client base spanning more than 3,500 clients.

Insolvency Plea Dismissed Before the Order

The action follows a September 2026 ruling in which the NCLT's Indore bench dismissed an insolvency application by Oswal Woollen Mills against EKI Energy Services, citing a pre-existing dispute over carbon credit pricing, ScanX reported. The claim totalled ₹1.85 crore, including ₹1.28 crore principal and ₹56 lakh interest. On August 25, 2026, EKI held its 15th annual general meeting by video conference from its Indore office, chaired by Dabkara, and approved its FY26 financials.

Payment Deadline for the Penalties

Sebi directed the company and the individuals to pay the penalties within 45 days of the order.