SEBI implies restriction on 4 companies, 3 broking firms
SEBI passed restrictions on four listed companies – Murli Inds, Akruti City, Welspun-Gujarat Stahl Rohren and Brushmanthree, proprietor Sanjay Dangi and other relevant entities for their role in market manipulation in stocks spanning several years.
Apart from the listed companies 10 companies of Sanjay Dangi, 14 Ashika Group companies, 18 entities from the Murli Industries Group, 13 Ackruti City entities, six Welspun Group entities and one from the Brushman Group from dealing in shares of their company or group entities.
SEBI ordered stock exchanges to strike off the position of these entities in the derivative segments and not to offer them any new position.
Some of the stockbrokers like Sanchay Fincom, Sanchay Finvest and Ashika Stock Broking were ordered not to buy, sell or deal in securities in their accounts and property until further orders. They are also restricted from enlisting any new clients.
SEBI reported that the enlisted companies raised funds through qualified institutional placements or foreign currency convertible bonds between 2007- 2009.
Sanjay Dangi group manipulated the stock prices. Securities Report of the Council of India had mentioned that Sanjay Dangi group along with other entities implemented fraud schemes.
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