Sebi bars promoters of P M Telelinnks, 10 others from market

Sebi today barred three promoters of P M Telelinnks and 10 other people from dealing in the capital market for alleged fraudulent trading in shares of the company as well as in the shares of 8K Miles Software Solutions.
In April this year, the Securities and Exchange Board of India (Sebi) had restrained P M Telelinnks promoter and managing director Gulab Chand Pukhraj Surana and two other firm's promoters -- Ravi Pukhraj Surana and Dipin Surana -- from dealing in the capital markets, till further orders.
Similarly, the regulator had also prohibited 10 other individuals referred to as "Shah/Patel Group" entities from dealing in the capital market.

In its latest order today, Sebi has said that it found no basis for "either vacating the interim directions or modifying them".
"... Noticees have failed to give any plausible reasoning for their acts as dealt with in the interim order and have not been able to make out a prima facie case for revocation or modification of the interim order," Sebi noted.
Among others, it also said that investigation in the matter is going on and appropriate decision, in accordance with law, would be taken after completion thereof.

According to Sebi, it has been found that the entities "acting in concert, indulged in fraudulent and manipulative trading by way of trading amongst themselves without intending to transfer the beneficial ownership of shares traded, trading at prices above LTP (Last Traded Price)and thereby creating unnatural and artificial volumes in the scrips of PMTL (PM Telelinnks Ltd) and 8K MILES and manipulated their prices".

It was observed that during the period - August 2011 and September 2012 - there were abnormal and sharp price movements in the scrip of the P M Telelinnks on the BSE.
Preliminary probe by Sebi found that Gulab, Dipin, Ravi and the entities of Shah/Patel Group had substantially traded in the scrip of P M Telelinnks.
Sebi said similar price movement and pattern of dealings on the BSE were found in the scrip of 8K Miles and it was observed that the same entities had also traded in the scrip of the firm.