Sebi probed 213 scrips to check price rigging, insider trading

The government today said market regulator Sebi has examined shares of 213 companies in the past 29 months to investigate instances of price rigging and insider trading.

"Certain irregularities in share transactions have come to the notice of Sebi," Minister of State for Finance Namo Narain Meena said in a written reply to the Lok Sabha.

He said that based on complaints, Sebi conducted investigation into shares of 175 companies during fiscals 2009-10 and 2010-11 on charges of market manipulation and price rigging, capital issue related manipulation, and insider trading, among others.

Investigations in 38 scrips were carried in the first five months (till August 23) of the current fiscal.

The minister further said that investigations were completed in 146 cases during the last two financial years. Investigations which have been completed during 2009-10 and 2010-11, include 97 cases related to market manipulation and price rigging, and 25 of insider trading.

Meena further said that following investigations, action was taken against 1,321 entities in the last two fiscals. The action included, warnings, cancellation of certificate of registration of market participants and prohibitive directions among others.

The market regulator had examined shares of 44 companies for market manipulation and price rigging in 2009-10 and 56 in the following fiscal.

Under capital issue related manipulation, eight companies were investigated, while 38 firms came under the radar of the market regulator for insider trading. Similarly, shares of two companies were investigated for takeovers in 2009-10 and 4 the next year.

Companies whose share were investigated in the 29 month-period beginning April 1, 2009, include, PNB, Reliance Industries, Tata Motors, NTPC and Hindalco.