Markets regulator Sebi has barred 27 entities from the securities market for indulging in fraudulent trading in shares of Gemstone Investments and Spectacle Infotek.
In two separate orders, Sebi barred 17 entities for fraudulent trading in shares of Gemstone Investments and 10 entities for manipulation in shares of Spectacle Infotek. Nine entities are common in the two cases.
These entities have been prohibited from the capital markets for periods ranging from five to seven years.
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"...The noticees (entities) in the present proceedings were related/connected to each other and connived amongst themselves for execution of synchronised and self-trades, creation of artificial volume and price manipulation which distorted the market equilibrium and were fraudulent in nature," Sebi said in similar-worded orders dated January 4.
Sebi has already restrained 20 entities from the market for fraudulent trading in shares of Well Pack Papers and Containers.
Some of the 27 entities are already banned from the securities market for violation of capital market norms in the case of Goldstone Technologies, LGS Global and Well Pack Papers and Containers.
Since the entities violated several provisions of the Sebi (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, the regulator restrained the entities from the capital market to protect the interest of investors and the integrity of the securities market.
"A thorough review of the exercise is going on but it will
take us a few months to bring it to the same level as securities market," the Sebi chief said.
On providing settlement guarantee fund (SGF) for the commodity exchanges, Sinha said, "before introducing core SGF through our SECC regulations we provided for this money to be set aside."
"The problem is that the commodity exchanges do not have the clearing corporations and by law, three years time is being given to them to set up such facilities. We are engaging them and preparing them on how this can be done at the earliest," he said.
"Commodities market has huge potential of growth but we have to approach it in a cautious manner," he noted.
Bourses are required to maintain SGF as a cushion for any residual risk, and it works like a self-insurance mechanism in the event of a trading member defaulting on settlement obligations.
Following the NSEL scam in August 2013, Commodities Market Regulator FMC was merged with Sebi in September 2015.
