Markets regulator Sebi today barred ISF Securities from accepting fresh client for six months for indulging in fraudulent trading in the shares of Gangotri Textiles.
Certain entities, allegedly functioned as group (Vishvas Group) had executed circular as well as synchronised trades and created artificial volume in the scrip of Gangotri Textiles, which was otherwise found to be illiquid in nature.
ISF Securities was also a part of the group.
By indulging in such activity, it violated provisions of PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) Regulation and norms pertaining to stock brokers.
"Noticee by indulging in reversal, circular, self and synchronised trades created a misleading appearance of trading by artificial volumes and manipulated the price of the Gangotri scrip," Sebi said.
Accordingly, in an order passed today Sebi has directed "noticee -- ISF Securities stands prohibited from accepting any fresh clients for a period of six months".
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