Sebi bars 10 entities for one year over violation of market norms

Sebi conducted a probe to determine whether the entities violated market norms while dealing in the scrip of Mystic Electronics Ltd

Markets regulator Sebi on Friday restrained 10 entities from accessing the securities market for one year for violating market norms while dealing in the scrip of Mystic Electronics Ltd.

Sebi conducted a probe to determine whether the entities violated market norms while dealing in the scrip of Mystic.

The investigation noted that the scrip of Mystic witnessed unusual fluctuation in price and volume during the period between March 19, 2013, and March 31, 2015.

Sebi noted that certain connected entities were contributing to the price rise with their buy orders that were significantly above the last traded price even though the fundamentals of the company would not justify such trades.

The repeated buy trades substantially above the last traded price was not a normal rational behaviour and such trades were executed by the entities with the intention of manipulating the price of Mystic's scrip.

The entities violated the Prohibition of Fraudulent and Unfair Trade Practices norms.

Therefore, the regulator has barred entities from the securities market for one year. The entities are Function Financial Consultants, Helpful Investment Advisory, Topwell Properties, Manifold Vinimay, Shivkori Construction, Amanat Suppliers, Lagan Dealtrade, Limestone Properties, Comfort Dealcom and Mankind Vintrade.