SEBI Bans DroneAcharya and Promoters for Two Years, Slaps ₹75 Lakh Penalty Over IPO Misuse
Regulator Finds Misuse of ₹33.96 Crore IPO Funds and False Corporate Announcements
Promoters Prateek and Nikita Srivastava Among Those Penalized in Landmark SEBI Order
By Our Legal Reporter
New Delhi: November 29, 2025:
In a major crackdown on corporate misconduct, the Securities and Exchange Board of India (SEBI) has barred DroneAcharya Aerial Innovations Ltd (DAIL), its promoters, and associated entities from accessing the securities market for up to two years. The regulator also imposed fines totalling ₹75 lakh, citing misutilisation of IPO proceeds and fraudulent disclosures.
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This ruling, delivered on November 28, 2025, underscores SEBI’s determination to protect investors and maintain transparency in India’s capital markets.
Background of DroneAcharya’s IPO
DroneAcharya Aerial Innovations Ltd, a Pune-based drone solutions company, launched its initial public offering (IPO) in December 2022, raising ₹33.96 crore. The shares were listed on the BSE SME platform on December 23, 2022.
The IPO was marketed as a step toward expanding drone technology services in India. However, SEBI’s investigation revealed that the company and its promoters engaged in misleading announcements and inflated financial disclosures soon after listing, allegedly to boost share demand artificially.
SEBI’s Findings
In its 105-page order, SEBI highlighted several violations:
- Misuse of IPO proceeds: Funds raised from the public were not used for the stated purposes.
- Fraudulent disclosures: The company allegedly inflated revenues and profits to mislead investors.
- Artificial demand creation: Misleading corporate announcements were made to prop up share prices.
- Diversion of funds: IPO money was allegedly diverted to related parties and entities.
Penalties Imposed
SEBI imposed penalties on multiple parties involved in the misconduct:
- Prateek Srivastava (Promoter & MD) – ₹20 lakh penalty and two-year ban.
- Nikita Srivastava (Promoter & CFO) – ₹20 lakh penalty and two-year ban.
- DroneAcharya Aerial Innovations Ltd (DAIL) – ₹10 lakh penalty and two-year ban.
- Instafin Financial Advisors LLP – ₹10 lakh penalty and two-year ban.
- Sandeep Ghate (Advisor) – ₹10 lakh penalty and two-year ban.
- Micro Infratech Pvt Ltd – ₹5 lakh penalty and one-year ban.
The total penalties amounted to ₹75 lakh, with bans ranging from one to two years depending on the party’s role.
SEBI’s Message to the Market
The regulator emphasized that investor trust is paramount. Misuse of IPO funds and fraudulent disclosures undermine confidence in the capital markets. SEBI’s order sends a strong signal that corporate governance violations will not be tolerated.
The ruling also highlights SEBI’s proactive stance in monitoring SME listings, which have seen increased investor participation in recent years.
Impact on Investors and Market
The ban and penalties have several implications:
- Investor protection: SEBI’s action safeguards retail investors who subscribed to DroneAcharya’s IPO.
- Market credibility: The crackdown reinforces transparency and accountability in India’s securities market.
- SME sector caution: Other small and medium enterprises will be more cautious in their disclosures and fund utilization.
- Drone industry setback: DroneAcharya’s reputation has taken a hit, potentially affecting investor sentiment in the emerging drone technology sector.
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Reactions from Experts
Legal and market experts have welcomed SEBI’s ruling:
- Investor advocates praised SEBI for acting decisively against fraudulent practices.
- Corporate lawyers noted that the order sets a precedent for stricter scrutiny of IPOs.
- Market analysts believe the ruling will encourage better compliance among SME firms.
Conclusion
The SEBI order against DroneAcharya Aerial Innovations Ltd and its promoters marks a landmark moment in India’s regulatory landscape. By imposing bans and penalties for IPO misuse and fraudulent disclosures, SEBI has reinforced its commitment to investor protection and market integrity.
For investors, the ruling is a reminder to exercise caution and conduct due diligence before subscribing to IPOs. For companies, it is a warning that transparency and accountability are non-negotiable in India’s capital markets.
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- SEBI bans DroneAcharya promoters
- DroneAcharya IPO misuse penalty
- SEBI ₹75 lakh fine DroneAcharya
- Prateek Srivastava SEBI ban
- Nikita Srivastava SEBI penalty
- DroneAcharya IPO fraud SEBI order
- SEBI crackdown SME IPO misuse
- DroneAcharya Aerial Innovations SEBI ruling
- SEBI investor protection IPO misuse
- Landmark SEBI order November 2025