Markets regulator Sebi has eased restrictions on as many as five individuals against whom the regulator had taken action in a two different cases of alleged misuse of stock market platform for tax evasion and suspected money laundering activities.
The entities, which were barred from the securities market in two different cases, have now been allowed certain relaxations including permission, to deal in government securities and invest in ETFs (exchange-traded funds).
Besides, they can enter delivery-based transactions in the cash segment in NSE Nifty 500 index as well as S&P BSE 500 shares and subscribe to mutual funds.
Among others, these entities can tender shares lying in their demat accounts in any open offer/delisting offer under the relevant Sebi regulations.
In the matter related to four scrips listed on the SME segment, Sebi had barred four companies and 235 other entities in June 2015 from the securities market for making Rs 614 crore illegal gains through suspected money laundering and tax evasion activities. Now, Sebi has given relaxations to Uma B Ramesh, Sanjeev Tandon (Huf), Umesh Kumar Danwani, Sangeeta Naresh Mittal and Surekha Ashok Mittal.
With regard to the case involving Dhyana Finstock, the watchdog has barred 76 entities from the markets in June this year. Now, it has ased curbs on Ankit Mahendrabhai Shah and Jyotiben Mahendrabhai Shah.
In two separate orders passed yesterday, Sebi said these seven entities have not been able to make out a prima facie case for revocation of ban imposed on them and therefore confirmed the directions issued in the interim orders.
However, the markets regulator has given certain relaxtions to these entities as they raised concern over challenges in running their activities on account of ban and consequent freezing of their demat accounts.
Considering the facts and circumstances of the case, "I deem it appropriate to provide relaxations so as to address the issues of the personal and business exigencies or other liquidity problems," Sebi Whole Time Member Rajeev Agarwal said in similar-worded orders.
As per the latest order, the entities for whom relaxations have been extended can sell the securities lying in their demat accounts as on the date of interim orders. This will exclude shares of the companies which are suspended from trading by stock exchanges concerned.
Besides, sale proceeds lying in the escrow account can be used for certain purposes.
Sebi said that up to 25 per cent of the value of the portfolio as on the date of the interim order or the amount in excess of the profit made/loss incurred or value of shares purchased to give exit, whichever is higher, may be utilised for business purposes and/or for meeting any other exigencies or addressing liquidity problems, etc.
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