Sebi bans 7 individuals in LGS Global share manipulation case

Sebi today slapped a six-year ban on seven individuals for manipulating trading in the shares of LGS Global Ltd over a period of three years starting from 2008.
After observing irregularities, Sebi had initiated investigation into trading in certain scrips, including LGS, during the years 2008, 2009 and 2010.
An analysis found that prima facie certain entities had indulged in creating artificial volume by trading in a synchronised manner carrying out off-market transfers among themselves for the purpose of meeting settlement obligations of another and in turn contributing to the price rise.
Related to the case, Sebi had passed an interim order in February 2011, restraining 39 persons/entities from accessing the securities market.

In its order today, Sebi imposed a six-year ban on seven individuals -- Bhavesh Pabari, Bipin Jayant Thaker, Prem Mohanlal Parikh, Hemant Madhusudan Seth, Mala Hemant Seth, Ankit Sanchaniya and Bharat Shantilal Thakkar -- from the securities market.
The period of prohibition already undergone by them, pursuant to the interim order issued in February 2011, would be taken into account for computing the ban period.

"It is clarified that the restraint/prohibition imposed on the noticees shall run concurrently with the restraint/ prohibition imposed by Sebi vide order dated May 13, 2015 in the matter of dealings in the shares of Goldstone Technologies Ltd," the regulator said.

The notices in the present proceedings have already been restrained by Sebi, through an order in May 2015 in the matter related shares of Goldstone Technologies, from accessing the securities market.
Noting that their default has been repetitive in nature, Sebi's Whole Time Member Rajeev Kumar Agarwal said they are being restrained from accessing the securities market as well as prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner for the given period.