Sebi orders impounding of Rs 20 crore unlawful gains in two cases

Entities are directed not to dispose of or alienate any of their assets or securities, till amounts is credited to an escrow account

Markets regulator Securities and Exchange Board of India (Sebi) has ordered impounding of "unlawful gains" totalling over Rs 20 crore in two separate cases of price rigging involving Ruchi Soya Industries and Exelon Infrastructure.

In the matter of Ruchi Soya Industries, the regulator directed seven entities — Navinya Multitrade, Shreyans Credit and Capital, Betul Minerals and Constructions, Aventis Biofeeds, Betul Oils and Feeds, Sunmate Trade, Uni24 Techno Solutions — to deposit Rs 8.3 crore (Rs 8,30,99,802), including interest, to an escrow account.

Similarly, in the matter of Exelon Infrastructure, Sebi has ordered 52 entities including the company, its promoter, six directors and 44 other related entities to deposit Rs 12.54 crore (Rs 12,54,84,118), including interest, to an escrow account.

An investigation conducted by Sebi in the scrip of Exelon Infrastructure for the period of December 2010 to January 2012, found that the entities had indulged in manipulative and unfair trading practises and allegedly made profits.

Sebi in a preliminary probe in the matter Ruchi Soya Industries found that seven entities executed trades with huge volumes and at a price significantly above the last traded price (LTP) and pushed up the price of the scrip of Ruchi Soya on September 27, 2012.

Exelon Industries and the related entities had manipulated the price of the scrip, established new high price (NHP) through first trades and made corporate announcements of positive nature, and made profits during December 2010 to June 2011.

The entities had executed trades with huge volumes and at a price above the LTP and were matching the sell orders with buy orders in order to establish NHP.

"Accordingly, as an interim measure, an ad-interim ex-parte Order for impounding such alleged profits ... Needs to be issued against the suspected entities," Sebi said in two separate interim orders.

The entities are directed not to dispose of or alienate any of their assets or securities, till such time the amounts is credited to an escrow account, the orders said.