Midcap Crash: Sebi revokes market ban on Milestone shares

Probe relates to a sharp plunge of 20-26% in the shares of several cos on July 26 on the BSE and NSE

Market regulator Sebi has revoked its interim order restraining Milestone Shares and Stock Broking from the capital market in the case related to share price plunge in mid-cap stocks of four firms.

The firms were Parsvnath, Tulip Telecom, Glodyne Technoserve and Pipavav Defence and Offshore Eng Ltd.

"The facts and circumstances of the case relating to the noticee do not suggest any emergent or urgent reasons to continue with the directions issued against the noticee vide the ad interim order at this stage," Sebi said in an order issued Thursday.

However, Sebi observed that investigation in the case is still going on and the regulator may take a final view and necessary actions after the completion of the probe.

Yesterday, Sebi had given relief to six other entities in the same case.

In August, this year, Sebi in an interim order had barred Milestone Shares and Stock Broking along with some other entities from the securities market till further directions.

The probe relates to a sharp plunge of 20-26% in the shares of Parsvnath Developers, Pipavav Defence and Offshore Engineering, Tulip Telecom and Glodyne Technoserve on July 26 on the BSE and NSE.

These stocks witnessed sharp intra-day price volume movement even though no major corporate announcements or price sensitive information was disclosed to the exchanges by these companies during previous 15 days.

A further probe into the matter found that the top identified clients whose sell volume constituted a significant share of the total sale transactions in these stocks accounted for up to 95 per cent of the total sale transactions, the regulator said.

Sebi said the analysis of trade data showed that these entities were instrumental in pushing down the prices of the concerned stocks.