Market regulator SEBI has taken this action in case of manipulation in share price.
If you invest in the stock market, then there is important news for you. Capital market regulator SEBI has banned 85 entities, including Sunrise Asian Ltd, from trading in the stock market. All these companies have been banned for 1 year due to manipulation in share price.
In its order, SEBI banned Sunrise Asian and its five directors from the capital market for one year and 79 entities for six months. SEBI had scrutinized the shares of Sunrise Asian for the period 16 October 2012 to 30 September 2015 based on a reference received from the Principal Income Tax Director (Investigation), Kolkata.
SEBI, in its investigation, found that as per the allotment of shares under the merger scheme, Sunrise Asian and its erstwhile directors had created an arrangement whereby 83 related entities manipulated the price of shares in four patches of trading during the investigation period. which has violated Fraudulent and Unfair Trade Practice (PFUTP) standards. SEBI found that 77 out of 83 entities were counterparties of sale of shares at artificially inflated or manipulated prices on the part of 1059 entities/allottees, thereby violating norms.
Coral Hub banned for 3 years
In a separate order, SEBI on Friday banned Coral Hub Ltd from the capital market for three years and six people 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 had issued false, misleading, exaggerated financial results during the years 2008-09 and 2009-10.
