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Sebi bans 27 entities from securities market for fraudulent trade

Mumbai(PTI): Markets regulator Sebi has barred 27 entities from the securities market for indulging in fraudulent trading in shares of Gemstone Investments and Spectacle Infotek.

Sebi

In two separate orders, Sebi barred 17 entities for fraudulent trading in shares of Gemstone Investments and 10 entities for manipulation in shares of Spectacle Infotek. Nine entities are common in the two cases. These entities have been prohibited from the capital markets for periods ranging from five to seven years.

“…the noticees (entities) in the present proceedings were related/connected to each other and connived amongst themselves for execution of synchronised and self-trades, creation of artificial volume and price manipulation which distorted the market equilibrium and were fraudulent in nature,” Sebi said in similar-worded orders dated January 4.

Sebi has already restrained 20 entities from the market for fraudulent trading in shares of Well Pack Papers and Containers. Some of the 27 entities are already banned from the securities market for violation of capital market norms in the case of Goldstone Technologies, LGS Global and Well Pack Papers and Containers.

Since the entities violated several provisions of the Sebi (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, the regulator restrained the entities from the capital market to protect the interest of investors and the integrity of the securities market.

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