Sebi has barred Kelvin Fincap Ltd and 43 other entities from the securities market for alleged irregularities in trading of the company's shares.
Besides, the market watchdog has restrained Kelvin Fincap from raising further capital, directly or indirectly, in any manner till further directions.
The ruling has come after regulator initiated a preliminary inquiry into the rise in traded volumes as well as price of Kelvin Fincap shares on the BSE during the period from June 18, 2013 to May 29, 2014.
It was observed that certain related/connected entities had substantially traded amongst themselves in shares of Kelvin Fincap and created artificial volume and contributed to the artificial price rise in the scrip.
According to the Sebi order, 44 entities, including Kelvin Fincap, have been barred from "accessing the securities market and further prohibited from buying, selling or dealing in the securities markets, either directly or indirectly, in any manner whatsoever, till further directions".
They can file their replies to the regulator within 21 days from receiving this order, which is dated August 14.
"The entities of Kelvin Fincap Group as stated in this order are prima facie found to be instrumental in manipulating trading in scrip of Kelvin by the intricate modus operandi," the Securities and Exchange Board of India (Sebi) said.
