India’s Securities and Exchange Board (SEBI) has barred DroneAcharya Aerial Innovations Ltd, along with its Managing Director and Chief Financial Officer, from accessing securities markets for two years due to regulatory violations, highlighting growing scrutiny in high-potential tech sectors.
SEBI issued a two-year ban on DroneAcharya Aerial Innovations Ltd, its Managing Director Prateek Srivastava, and CFO Nikita Srivastava, barring them from securities market participation. The action was prompted by violations in compliance and corporate governance regulations, with SEBI emphasizing market integrity and investor protection.
DroneAcharya, known for its drone and aerial technologies, had faced auditor resignations and operational challenges despite recent military contracts. The SEBI order follows an investigation into irregularities and non-compliance, aiming to reinforce regulatory discipline within emerging tech firms.
This ban restricts the company and concerned individuals from buying, selling, or dealing in securities for two years, reflecting SEBI’s increased vigilance over governance lapses in fast-growing startups. Meanwhile, market watchers note the potential impact on DroneAcharya’s financial and operational footing amid a competitive drone sector landscape.
Key highlights
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SEBI bans DroneAcharya Aerial Innovations, MD, and CFO for 2 years.
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Reason: Regulatory and compliance violations.
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Context: Auditor resignations, operational hurdles amid Army contracts.
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Impact: Prohibition from securities market transactions for 24 months.
Sources: Economic Times; SEBI filings; NDTV Profit; ScanX; MediaNama.