Sebi bars 6 entities from market; slaps Rs 36-cr penalty

Sectoral regulator the Securities and Exchange Board of India (Sebi) today barred six market intermediaries from trading in securities for allegedly carrying out manipulations in various IPO issues and also slapped a penalty of Rs 36.09 crore.

"Roopalben N Panchal, Devangi Panchal, Dipak Jashvantlal Panchal, Hina Bhargav Panchal, Bhargav Ranchhodlal Panchal and Arjav Nareshbhai Panchal shall not buy, sell or deal in the securities for three months," the Sebi said in its final order.

In case the amount are not received by Sebi within 45 days, these persons would be restrained from buying, selling or dealing in securities market for a further period of nine years.

The case relates to IPOs of 18 companies during the period 2003-05. These IPOs include that of NTPC, IDFC, TCS, Suzlon, among others.

In 2009, Sebi had issued show cause notice against the six persons for opening thousands of demat accounts in fictitious names and even manipulated applications in the retail category of several IPOs.

"They retained a portion of the shares themselves and transferred the balance in off-market to financiers and others. They as well as the financiers and others made unlawful gains by sale of those shares," the notice had said.

During 2005-06, Sebi had restrained these persons from buying, selling or dealing in the securities market, including in IPOs.