SEBI Ban: SEBI found that 77 out of 83 entities were counterparties to the sale of shares by 1059 entities/allottees at an artificially inflated or manipulated price, thereby violating the norms.
New Delhi: SEBI Ban: There is important news for those investing in the stock market. Markets regulator SEBI has banned 85 entities including Sunrise Asian Ltd from trading in the stock market. All of them have been banned for one year for manipulating the company’s share price.
SEBI’s strictness
SEBI in its order banned Sunrise Asian and its five directors from the capital market for one year and 79 entities for six months. SEBI had conducted scrutiny of the shares of Sunrise Asian for the period 16 October 2012 to 30 September 2015 based on a reference received from the Principal Director of Income Tax (Investigation), Kolkata.
What did SEBI find in the investigation
In its investigation, SEBI found that as per the allotment of shares under the scheme of merger, Sunrise Asian and its erstwhile directors had worked out an arrangement whereby 83 related entities traded the price of the shares in four patches during the period of investigation. This has resulted in violation of Fraudulent and Unfair Trade Practices (PFUTP) norms. SEBI found that 77 out of 83 entities were counterparties to the sale of shares on the part of 1059 entities/allottees at artificially inflated or manipulated prices, thereby violating the norms.
Banned this company for 3 years
In a separate order, SEBI on Friday banned Coral Hub Ltd from the capital market for three years and six persons for 2-3 years. All these people were either directors of the company or were part of the audit committee of Coral Hub Limited at the time of violation of regulatory norms. SEBI has said in its order that these companies have presented false, misleading, exaggerated financial results during the years 2008-09 and 2009-10.
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