Sebi refuses to lift ban on 21 entities in tax evasion case

Markets regulator Sebi today refused to lift market ban on 21 entities in cases related to suspected tax evasion and money laundering through stock trading platforms.
The entities are alleged to have misused the securities market system to artificially increase the share price of Radford Global and Moryo Industries for providing long-term capital gain (LTCG) benefits to the preferential allottees of these companies. Long-term capital gains carry tax exemption.
The Securities and Exchange Board of India (Sebi), through two separate interim orders in December 2014, had restrained Mohit Aggarwal and 20 entities, among others, from accessing the securities market till further directions on these matters.

Besides, these entities have been asked to file their objections, if any, within 21 days from the date of interim order.
However, they failed to submit their reply till date and avail of the opportunities of personal hearings provided to them on several dates.
Sebi Whole-Time Member Rajeev Kumar Agarwal said noticees (21 entities) have failed to make out a prima facie case for revocation or modification of the interim order and the material available on record justifies the continuation of the directions passed against them under the said order.
Accordingly, Sebi has said interim orders passed against these entities will remain in force till further directions.

Among the 20 entities in Moryo case are Deepti Lalwani, Garth Mercantile, Romy Realty, Surface Finance, Mahasvin Trading, Limestone Properties, Isairis Trading, Surface Finance and Gulmohar Dealcom while Mohit Aggarwal is part of Radford Global case.