Sebi has barred seven individuals from the capital market for six years after finding them guilty of manipulating trading in the shares of LGS Global over a period of three years beginning 2008.
After noticing irregularities, Sebi had initiated a probe into trading in certain scrips, including LGS, during the years 2008, 2009 and 2010.
An analysis found that prima facie certain entities had indulged in creating artificial volume by trading in a synchronised manner carrying out off-market transfers among themselves for the purpose of meeting settlement obligations of another and in turn contributing to the price rise.
Related to the case, Sebi had passed an interim order in February 2011, restraining 39 persons/entities from accessing the securities market.
Sebi, in an order issued late yesterday, imposed a 6-year ban on seven individuals -- Bhavesh Pabari, Bipin Jayant Thaker, Prem Mohanlal Parikh, Hemant Madhusudan Seth, Mala Hemant Seth, Ankit Sanchaniya and Bharat Shantilal Thakkar -- from the securities market.
The period of prohibition already undergone by them, pursuant to the interim order issued in February 2011, would be taken into account for computing the ban period.
"It is clarified that the restraint/prohibition imposed on the noticees shall run concurrently with the restraint/ prohibition imposed by Sebi vide order dated May 13, 2015 in the matter of dealings in the shares of Goldstone Technologies Ltd," the regulator said.
The notices in the present proceedings have already been restrained by Sebi, through an order in May 2015 in the matter related shares of Goldstone Technologies, from accessing the securities market.
In a separate order yesterday, the regulator banned 239 entities for making illegal gains of Rs 614 crore through manipulation of shares of four companies listed on the BSE's SME trading platform.
Sebi's clamp down follows irregularities witnessed in the scrips of four companies -- Eco Friendly Food Processing Park, Esteem Bio Organic Food Processing, Channel Nine Entertainment and HPC Biosciences.
The four companies as well as 235 other entities, including many individuals, have been banned from the securities market.
In the order, Sebi Whole Time Member Rajeev Kumar Agarwal has said the schemes, plan, device and artifice employed in the present matter is also a "possible case of money laundering or tax evasion which could be seen by the concerned law enforcement agencies separately".
The manipulation in traded volume and price of scrip by a group of connected entities in this case, has not only resulted in enabling illegal benefit to a group of entities but also has potential to induce gullible investors to trade in the scrip and harm them, Sebi said.
