SEBI barred Chandra Financial Services, Kundan Leasing & Finvest, Jay Investrade and Maruti Securities besides three individuals -- Harsh Shirish Maniar, Jay Shirish Maniar and K Varadarajan from stock markets for allegedly indulging in unfair trade practices
New Delhi: Securities and Exchange Board of India (SEBI) has restrained seven entities, including three individuals, from the securities market for allegedly indulging in unfair trade practices in the shares of Temptation Foods, Bang Overseas, Cals Refineries and two other companies, reports PTI.
The banned entities are Chandra Financial Services, Kundan Leasing & Finvest, Jay Investrade and Maruti Securities besides three individuals -- Harsh Shirish Maniar, Jay Shirish Maniar and K Varadarajan, according to the SEBI order.
The market regulator found these entities were involved in circular trading of shares of five companies -- Temptation Foods, Bang Overseas, Confidence Petroleum India, Cals Refineries and Shree Precoated Steels (presently known as Ajmera Realty & Infra India).
Chandra, Kundan, Jay, Harsh Shirish Maniar, Jay Shirish Maniar and Maruti have been restrained from the securities market till 3 June 2013.
Considering the facts and circumstances of the case and quantum of trading done by them, SEBI said it would be appropriate to restrain them from "buying, selling and dealing in securities and accessing securities market for a period of four years from the date of interim order dated 4 June 2009".
Since Varadarajan was not covered in the interim order dated 4 June 2009, the market regulator has also restrained him from the securities market for three years. The same would be effective from the date of this order.
SEBI had found inter-linkages among certain entities dealing in these five scrips in the form of off-market transactions as well as synchronised deals. All these transaction happened between August 2007 and February 2009.
Meanwhile, SEBI has discontinued the directions passed by it against HSM Financial Services and Shanti Financial Services related to these five scrips.
In the order, SEBI has also made references to market rigging by broker Ketan Parekh.
The market regulator in a separate order also barred Anita Deepak Dalal from accessing the securities market for 18 months over alleged trading irregularities in the scrips of three entities -- Bang Overseas, Confidence Petroleum India and Cals Refineries.
"... hereby restrain Anita Deepak Dalal from accessing the securities market and further prohibit her from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner for a period of 18 months." SEBI said.
As per the order, Dalal was found to be involved in creating artificial volumes in the scrips of the three entities.
SEBI noted that Dalal was not covered under the ad interim ex-parte order passed by the regulator in June, 2009 that restrained certain 'connected clients' from accessing the securities market and further prohibited them from dealing in them.
The regulator observed that "the trades of the noticee (Dalal) have to be considered as part of overall plan of manipulative trading in the five scrips amongst the connected clients".