Stocks
SEBI asks bourses to move 36 companies to normal trading category

The bourses have to check whether 50% of non-promoter holdings are in demat or electronic form: SEBI

 
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) on Monday said the stock exchanges may consider shifting securities from 36 companies from restricted trade category to normal trading, reports PTI.
 
In addition, SEBI also advised the stock exchanges to report to it about the action taken in this regard in the monthly/quarterly development report.
 
SEBI said the stock exchanges may consider to shift the scrips of these (36) companies from the Trade for Trade Settlement (TFTS) to a normal rolling settlement as these firms have established connectivity with both depositories—NSDL and CDSL.
 
In “trade-to-trade” segment, no speculative trading is allowed and delivery of shares and payment of the consideration amount are mandatory.
 
The scrips which could now be shifted to rolling settlement include Pyramid Trading and Finance, Fortune International, Shree Ganesh Elastoplast and Advance Petrochemicals.
 
However, the bourses have to check whether 50% of non-promoter holdings are in demat or electronic form, SEBI said.
 
“The stock exchanges may consider shifting the trading in these securities to normal rolling settlement subject to the following: at least 50% of other than promoter holdings are in dematerialised mode before shifting the trading in the securities of the company from TFTS to normal rolling settlement,” SEBI said.
 
For this purpose, the listed companies require to obtain a certificate from its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange, the regulator said.
 
In case an issuer company does not have a separate RTA, it may obtain a certificate in this regard from a practicing company secretary or chartered accountant and submit the same to the stock exchange, it added.
 
“There are no other grounds/reasons for continuation of the trading in TFTS,” SEBI said.
 

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CIC directs SEBI to disclose penalised companies

CIC Satyananda Mishra also directed SEBI to make public statistical details of number of cases in which penalty has been imposed and the number of cases which have been closed without any penalty

 
New Delhi: The Central Information Commission has directed the Securities and Exchange Board of India (SEBI) to make public the list of companies which have been penalised by it and those which have been let off without any fine, reports PTI.
 
Chief Information Commissioner (CIC) Satyananda Mishra also directed SEBI to make public statistical details of number of cases in which penalty has been imposed and the number of cases which have been closed without any penalty.
 
Kanpur-based Right to Information (RTI) applicant Tatwesh Agarwal had sought to know details of investigations carried out by SEBI into scrips of companies during the four-year period of 2006-10.
 
SEBI refused to part with the information saying investigations were undertaken by various entities for violation of various provisions of law and the probe resulted, either in imposition of penalty or closure of the case.
 
He said such details are not maintained centrally and are scattered across case files.
SEBI said details of an individual case can be provided if the applicant gives specific details of a case.
 
“After carefully considering the facts of the case and the submissions made before us, we are of the view that the CPIO/SEBI has not made sufficient efforts to provide any information in this case. The CPIO had merely refused to disclose the information by taking recourse to the exemption provision contained in the subsection 1(h) of section eight of the Right to Information Act,” Mr Mishra said.
 
He said statistical details about the number of cases taken up for investigation during a particular year and number of cases in which any penalty was imposed or the case was closed should be available with the SEBI and should be disclosed.
 
“Apart from this, the list of entities against whom penalties have been imposed and those whose cases had been closed must be provided,” Mr Mishra said.
 

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COMMENTS

sun

4 years ago

very good decision by the CIC. the SEBI ought to disclose all the erring companies and the penalties imposed by the SEBI to them. this news should be brought to the Investing public and then only everbody know who are the real culprits. the companies simply evading all their wrong doings and with the help of officials they are covering it up.

SEBI imposes Rs1 lakh fine for synchronised trading

SEBI carried out investigation into alleged irregularity in trading in the shares of 12 entities

 
New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs1 lakh on Sunil Kumar Mehta for alleged indulging in synchronised trading activities in shares of 12 companies including Ushdev International and Lotus Eye care Hospitals, reports PTI.
 
The alleged synchronised or circular trading in these companies happened from 1 March 2009 to 15 December 2009 on the Bombay Stock Exchange (BSE).
SEBI, in an order dated 31 August 2012, slapped Rs1 lakh fine on Sunil Kumar Mehta.
 
“In my view, the penalty imposed on the noticee (Sunil Kumar Mehta) is commensurate with the defaults committed by him,” adjudicating officer PK Kuriachen said in the order.
 
Synchronised or circular trading refers to a practice where the seller and buyer may have an understanding between them on trading of specific shares.
 
SEBI carried out investigation into alleged irregularity in trading in the shares of 12 entities—Allcargo Global Logistics, Asian Star Company, KSL & Industries, Mavens Biotech, Panoramic Universal, Rasi Electrodes, Sat Industries, Ushdev International, KBS Capital Management, Lotus Eye care Hospitals, MVL and Anil Products.
 
The probe revealed that a group of entities namely, Sunil Kumar Mehta, Manish Mathur, Bhavesh Kothari, Suresh Hanswal, Hitesh Mahendra Jain, Rakesh H Jain, Bhavesh Jain, Jitendra Kumar Jain and Hemlata Ramesh Hankare were linked with each other. They, acting in collusion, traded in the shares of the 12 companies.
 
According to the order, Mr Mehta on his own account has traded only in one scrip—Panoromic—in which he bought 1,800 shares and sold 1,600 shares.
 
“The amount of loss caused to an investor or group of investors also cannot be quantified on the basis of the available facts and data,” it added.
 
As per the order, it was alleged that Mr Mehta, acting in collusion with others, orchestrated the manipulation of trading volume and price of various scrips with the use of trading account/bank account of a number of entities (some of whom were his front entities) in violation of norms.
 

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COMMENTS

sun

4 years ago

one lakh fine!!!!!!!!!!!!!!! It is a peanut? there were circular trading taken place and the Watchdog found out and then penalized with one lakh fine. Great joke. how much monies involved in this circular trading. this is not enough. this is the weakness of our System. Now god only have to safeguard and to protect the Indian retail investors.

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