The Securities Appellate Tribunal on Friday directed Securities and exchange board of India (Sebi) to complete investigations in the Sanjay Dangi group case by the year-end. The tribunal also directed Dangi to give an undertaking that he will not deal in the stock market in the interim period.
In December 2010, Sebi had passed an interim order banning Mumbai-based high net worth individual Sanjay Dangi, his associates and promoters of four companies – Murli Industries Ltd, Ackruti City Ltd, Welspun Corp Ltd and Brushman India Ltd – from dealing in the equity markets following allegations of price manipulation.
The Sebi order followed an income tax (I-T) department probe. In its 57- page order Sebi had said investigations revealed a well-planned strategy to manipulate the share price of the company before the issuance of the FCCBs.