Don’t miss the latest developments in business and finance.

Sebi bars Venture Business Advisors from market for 10 years

Image
Press Trust of India Mumbai
Last Updated : Aug 20 2014 | 7:21 PM IST
Market regulator Sebi today barred Venture Business Advisors from the securities market for 10 years for facilitating fraudulent trading in the shares of Temptation Foods.
Besides, Sebi has restrained the director of Venture Business Advisors Pvt Ltd (VBAPL) Vineet Kumar from the capital market for a period of five years.
The case related to manipulation of trading in the scrips Temptation during January 2007 to February 2009.
According to Sebi, VBAPL, the promoter entity of Temptation, transferred funds and shares of the company to 'connected entities', which were utilised to create artificial volumes in the scrip by carrying out reversal and circular trades.
"Thus, VBAPL aided and abetted connected entities to create a false and misleading appearance of trading in the scrip of Temptation," the Securities and Exchange Board of India (Sebi) said in an order.
It also said "Vineet Kumar is the director of VBAPL and was in charge and responsible for the business of VBAPL and is, therefore, liable and responsible for all the acts and commissions of VBAPL."

Also Read

Consequently, Sebi has restrained "VBAPL from accessing the securities market and further prohibit it from buying, selling or dealing in securities market, directly or indirectly, for a period of 10 years."
The period of prohibition already undergone by Venture Business Advisors pursuant to Sebi's ad interim ex parte order in June, 2009 shall be taken into account for the purpose of computing the 10 years of prohibition imposed in this order.
This order will come into force with immediate effect.
In a separate order, Sebi has disposed off case against Jigish Vasa in the matter of Winsome Textile Industries saying the violation of fradulent trading "is difficult to establish" against him.
"The alleged violation of...Sebi (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, is difficult to establish against Shri Jigish Vasa in the present adjudication proceedings and accordingly the present adjudication proceedings is disposed of," Sebi said.

More From This Section

First Published: Aug 20 2014 | 7:21 PM IST

Next Story