SEBI Bars 12 Entities from Securities Market for Manipulating Share Price
A probe initiated by the Securities and Exchange Board of India (SEBI) revealed that the entities were connected to each other and were acting in concert to manipulate the price of the scrip.
The Securities and Exchange Board of India (Sebi).
New Delhi: Markets regulator Sebi Tuesday barred a total of 12 entities for 4 years from the securities market for manipulating the share price of Ram Minerals and Chemicals Ltd.
"They (12 entities) matched the price of prevailing buy orders which were placed at a higher price than the last traded price and thus contributed to increased scrip price with each of their trades, and thereby misled the investors," Sebi said while imposing a ban on them.
The Securities and Exchange Board of India (Sebi) conducted an examination from December 2013 to December 2014 regarding the trading in the scrip of Ram Minerals and observed that the price rose from Rs 2.20 per share to Rs 219.55 during the investigation period.
The probe revealed that entities were connected to each other and were acting in concert to manipulate the price of the scrip. Despite sufficient buy orders being available in the market, the entity released very small quantity of shares in each transaction and performed not more than one transaction a day.
The intention of the entities was to mark the share price higher and not merely to enter into the sale transactions, Sebi noted.
By doing so, they violated the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, the regulator said.
Accordingly, All Time Buildtech Pvt Ltd, Anuradha Arora, B G Freight Shoppe India, Girraj Kumar Gupta HUF, and Ever Bright Trading Pvt Ltd were among the 12 entities that were barred from the securities market for 4 years.
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