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Sebi lifts trading ban on 244 entities accused of evading tax via stocks

It said that they did not find any adverse evidence against the companies

Press Trust of India  |  New Delhi 

Illustration: Ajay Mohanty
Illustration: Ajay Mohanty

Regulator has lifted on 244 entities which came under the scanner for alleged misuse of platform for evasion, saying it did not find any "adverse evidence" against them.

The move comes after Securities and Exchange Board of (Sebi) earlier this month revoked ban on more than 500 entities in four separate cases.


These are Radford Global case; Pine Animation; First Financial as well as the matter of dealing in of Eco-Friendly Food Processing Park, Esteem Bio Organic Food Processing, Channel Nine Entertainment and HPC Biosciences.

These entities were also under Sebi's radar for alleged misuse of platform for evasion and suspected money-laundering activities.

In the present case, in March 2016 had restrained 246 entities from the markets till further directions after conducting a preliminary probe into the dealings in Auto from January 2013 to December 2015 following unusual price movement and volume in the company's

Subsequently, five confirmatory orders were passed against these entities between June 2016 and July 2017.

The regulator had, prima facie, found the acts of various entities of Auto Group involving fraud in connection with dealing in securities which was in violation of Sebi's PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.

Following the interim orders, conducted a detailed investigation into the role of various entities in price manipulation in the scrip of Auto so as to ascertain the violation of securities laws.

After completion of the investigation, the regulator said it "did not find any adverse evidence/adverse findings in respect of violation of provisions of the PFUTP regulations in respect of ...244 entities".

Accordingly, in an order passed on September 21 has revoked the interim and confirmatory orders against these entities with immediate effect.

However, the regulator said directions issued against the remaining two entities would continue.

First Published: Fri, September 22 2017. 15:44 IST
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