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The Securities and Exchange Board of India (Sebi) has revoked its directions that barred nine firms from the capital market, in a matter related to price manipulation in shares of FMCG major Ruchi Soya Industries. In February, Sebi through an interim order had restricted the firms from accessing the capital market after it decided they were connected and had manipulated the closing price of Ruchi Soya shares in 2012. In its latest order, the regulator said the matter required a detailed probe and that the interim order need not continue during pendency of the investigation.
It also noted the firms had “already undergone restraint of more than nine months since the interim order”. “The balance of convenience at this stage is in favour of the noticees and the facts and circumstances of the case do not suggest any emergent or urgent reasons to continue with the directions issued against the noticees vide the interim order,” Sebi said. It, however, said it may take appropriate action against the firms in the case, on completion of the investigation.
The firms against which the ban has been revoked are -- Shreyans Credit and Capital, Betul Minerals and Constructions, Aventis Biofeeds, Betul Oils & Feeds, Sunmate Trade, Moebius Credit and Capital, Navinya Multitrade, Uni24 Techno Solutions and Vision Millennium Exports.
An initial probe by Sebi had found that these firms had manipulated the closing price of Ruchi Soya's scrip on September 27, 2012, in the cash segment, which was the settlement price for derivative segment, to gain from their long positions in the futures of total 71.96 lakh shares of the company.
Among others, Sebi in its latest order had observed that there was no allegation that there were any premeditated synchronised trades among the entities.
