MUMBAI: Among the investing community on Dalal Street, it's believed that a large number of speculators indulge in circular trading- trying to push up a stock, lure gullible investors to buy those scrips and then quietly exit, leaving investors with dud stocks. Late on Wednesday, market regulator Sebi banned 39 such entities from the market for indulging in circular trading in Spectacle Infotek, Goldstone Technologies, Gemstone Investments, LGS Global and Well Pack Papers & Containers. The order followed a detailed investigation in these stocks and their price movement between 2008 and 2010, the market regulator said.
The investigation report pointed out that several of these entities are linked to each other, through directorships in the same company, introduction during the mandatory "know your client (KYC)" verifications, have common telephone numbers, and some have even furnished the same email id in KYC form. The Sebi investigation found there were 196 members within the Walmiki-Shah group and 43 in the Pabari-Parikh group, and identified 39 entities which were the core members.
Sebi barred 39 entities from accessing the stock market, and also prohibited them from buying, selling or dealing in shares. The regulator also asked the stock exchanges to square off any existing futures & options position these entities have.
Source: https://timesofindia.indiatimes.com/business/india-business/Sebi-bars-39-entities-for-price-rigging/articleshow/7414908.cms
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