Sebi has now barred the four companies as well as 235 other entities
SEBI
Mumbai: Cracking the whip, Sebi on Monday barred four companies and 235 other entities from the securities market for making Rs 614 crore illegal gains through suspected money laundering and tax evasion activities.
The capital market watchdog’s order comes after it found manipulations in the scrips of four companies — Eco Friendly Food Processing Park, Esteem Bio Organic Food Processing, Channel Nine Entertainment and HPC Biosciences. A huge rise in the traded volumes and prices of these scrips — during the period from January 1, 2013 to December 31, 2014 — were noticed after which the regulator initiated a preliminary inquiry.
In his 80-page order, Sebi whole-time member Rajeev Kumar Agarwal said the schemes, plan, device and artifice employed in the present matter is also a “possible case of money laundering or tax evasion which could be seen by the concerned law enforcement agencies separately”.
The manipulation in the traded volume and price of the scrip by a group of connected entities in this case, has not only resulted in enabling illegal benefit to a group of entities but also has potential to induce gullible and genuine investors to trade in the scrip and harm them, Sebi said.
“In the whole process, entities of Trading Group provided a hugely profitable exit to the preferential allottees and pre IPO transferees... Consequently, all the preferential allottees and pre-IPO transferees have collectively made a profit of Rs 614 crore,” Sebi said.
The Sebi has now barred the four companies as well as 235 other entities, including many individuals, from the securities market. These entities have been “restrained from accessing the securities market and buying, selling or dealing in securities, either directly or indirectly, in any manner, till further directions,” Sebi said.
( Source : PTI )
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