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Kailash Auto Finance case: Sebi bans 7 entities from securities mkt for 4 yrs

Press Trust of India  |  New Delhi 

Wednesday barred seven entities from accessing the securities market for a period of four years for indulging in fraudulent trade in the scrips of Kailash Auto

Besides, the existing holding of securities, including units of mutual funds, of the entities would remain frozen during the period of restraint, the regulator said in a final order.

The regulator had conducted an investigation from January 2013 to December 2015 in respect of trading in the stocks of Kailash Auto to examine possible violations of securities norms.

during the probe had also received a letter from the income tax department stating that certain entities had generated bogus long-term capital gain, through stock exchange mechanism, in various scrip including the scrip of Kailash Auto

During the examination, the regulator found that the seven entities were connected to each other and executed sell trades in a fraudulent manner to create misleading appearance of trading in the scrip at higher prices and thereby manipulating the share's price.

The act of manipulating the price of scrip violates PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, the (Sebi) said.

Accordingly, banned Eversafe Promoters, Bholebaba Suppliers, Subhankar Exim, Sarvottam Advisory, Overall Vincom, Akriti Advisory Services (now known as Jagruti Infra Developers) and Supernova Advertising for period of four years.

The four-year ban would include the debarment period of two and half years already served by Bholebaba Suppliers and Overall Vincom, Sebi noted.

In March 2016, Sebi passed an interim order, restraining both the entities from the securities market till further directions. The order was subsequently confirmed through a confirmatory order.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, December 05 2018. 21:20 IST