Synopsis:
SEBI banned Seacoast Shipping Services Ltd and its promoters for five years over fake accounts, fund diversion, and fraud. The logistics company’s stock has crashed over 70 percent in a year and is now suspended.
A penny stock providing logistics services to exporters and importers has drawn attention as both the company and its promoters have been banned from the stock market for five years. Read the article below to understand the reasons behind SEBI’s action.
Seacoast Shipping Services Ltd, with a market capitalization of Rs. 79.72 crore, last traded on September 22, 2025, and its shares are currently suspended due to regulatory penalties.
Reasons why Seacoast Shipping Services Ltd is Banned
- The company misrepresented its financial statements from FY21 to FY23 and into 2023, misleading investors about its true financial health. In FY21, the company reported revenue of Rs. 243 crore and PAT of Rs. 11 Crore. In FY23, it reported revenue of Rs. 430 crore and PAT of Rs. 14 crore.
- Promoters Manish and Sameer Shah fraudulently allotted 1.5 crore equity shares to Manish Shah, defrauding the company. The company claimed that proceeds from a rights issue were used to pay ransom for promoter Manish Shah’s kidnapped son, but SEBI rejected this explanation due to lack of police records or evidence. Investigations revealed fictitious transactions and inconsistent statements by the company’s management.
- SEBI noted that Seacoast Shipping Services Ltd’s share capital surged nearly 240 times between 2020 and 2024 through preferential allotments, rights issues, and stock splits, which allowed promoters to sell their holdings at inflated prices.
SEBI’s Disciplinary Actions
- Manish Shah made unlawful gains of Rs. 47.89 crore, which SEBI has ordered him to disgorge with 12 percent annual interest to the investor protection and education fund within 45 days.
- Fines of Rs. 50 lakh each have been imposed on Seacoast and promoters Manish and Sameer Shah. Other directors, including Cheryl Shah and Sushil Sanjot, face fines ranging from Rs. 3 lakh to Rs. 8 lakh.
- In September last year, SEBI issued an interim order barring Seacoast, its Chairperson and MD Manish Shah, along with others, from the securities market over alleged book manipulation and multiple regulatory violations.
- SEBI has barred Seacoast from raising public funds for five years starting September 2024, and promoters Manish and Sameer Shah have been prohibited from market participation and associating with listed entities for the same period. Cheryl Shah and Sushil Sanjot face one-year restrictions. Additionally, the company must return diverted funds and set up a new audit committee to strengthen oversight and compliance.
Also Read: Stock in focus after receiving ₹37 Cr order from Companion Vinimay trading to supply industrial components
About the Company
Seacoast Shipping Services Limited, incorporated in 1982 and based in Ahmedabad, provides shipping and logistics solutions to exporters and importers in India, including container clearing, freight broking, ship chartering, coastal trade, warehousing, transportation, and mining services.
Seacoast Shipping Services Ltd’s stock has declined sharply, falling 59.56 percent over five years, 70.75 percent in the past year, and 42.86 percent in the last six months.
Written by Akshay Sanghavi
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