Sebi confirms ban on 20 entities in tax evasion case

The Securities and Exchange Board of India (Sebi) on Friday confirmed its interim order banning 20 entities for tax evasion and money laundering besides misusing stock exchange mechanism.

Among the 20 entities are Pushpdant Tradelink, Goodpoint Impex, Core Commodities, Shivsathi Mercantile, Jolly Pathak and Vinod Sukhani.

The regulator, via an interim order dated March 29, 2016, had barred 246 entities, including these 20, from markets after they were found to indulged in manipulation in shares of Kailash Auto Finance.

According to the interim order, these entities have booked a profit of Rs 1,600 crore through fraudulent trades.

"Apart from market manipulation and misuse of stock exchange system in the scrip of Kailash Auto, the entire plan, device and artifice of private placement, fabrication of share premium, issuance of bonus shares, subsequent transfers and retransfers of shares and funds to connected entities was designed and structured to beguile the same as transactions with commercial sense to generate bogus LTCG which is exempt from tax," the Sebi said in its Friday's order.

 

The regulator said that these 20 entities have failed to make out a prima facie case for revocation or modification of the interim order and material available on record justifies the continuation of the directions passed against them under the ad interim ex-parte order dated March 29, 2016.

Accordingly, the Sebi has confirmed its interim order passed against the 20 entities.

"The interim order dated March 29, 2016, shall remain in force till further directions," Sebi said in its latest order.