SEBI on 8 August 2013 barred 34 entities from the capital market for fraudulent dealings in the shares of 12 companies. It also restrained, Sunil Mehta, the main conspirator of the alleged manipulative trades from accessing the securities market for a period of seven years.
The 13 entities were barred for a period of five years as they were the active players of manipulation activities and were directly connected to Mehta. The remaining 21 entities were restricted from accessing the securities market for a period of three years.
The irregularities were figured out by SEBI after it probed into the stock trading activities of 12 firms, since March 2009 to 15 December 2009. It its probe, SEBI identified huge changes in the prices of the shares.
Sunil Mehta played a key role in creation of fraudulent deals by envisaging the scheme for manipulation of prices and volumes of the selected scrip’s. Further he enlisted the assistance of few people, who directly aided him in placing manipulative orders in the trading account of several persons.
The 12 firms include Mavens Biotech, KSL & Industries, KBS Capital Management, Lotus Eye care Hospitals, Panoramic Universal, Asian Star Company, MVL Limited, Rasi Electrodes, Allcargo Global Logistics, Sat Industries, Ushdev International, and Anil Products.
When: 8 September 2013