Sebi has refused to lift a ban on four entities from the securities markets in cases pertaining to suspected tax evasion and laundering of black money via stock-trading platforms.
However, they have been allowed to sell their shares lying in the demat accounts and deposit the sale proceeds in an interest-bearing fixed deposit with a nationalised bank.
The Securities and Exchange Board of India (Sebi), via separate interim orders, had barred Mishka Finance and Trading and Radford Global and 236 other entities from the capital markets.
They have been accused of misusing the stock exchanges to generate long-term capital gains worth several crores, thus converting unaccounted cash into legitimate money.
In April this year, Sebi had barred Mishka Finance and Trading and 128 other entities including Shrenik Nalin Zaveri from the securities markets.
Besides, it had also restrained Radford Global and 108 other entities including Amresh A Mody and his mother Hasumati Mody (a joint holder of demat account with his son) and Anil Rajat Agarwal & Sons HUF from the capital markets in December 2014.
In separate orders dated October 12, Sebi said that ban imposed against the four entities --Amresh A Mody, Hasumati Mody, Anil Rajat Agarwal & Sons HUF and Shrenik Nalin Zaveri -- by the interim order cannot be removed at this stage.
However, they have made out a prima facie case for certain relaxations so as to avoid any irreparable loss to them, it added.
Sebi has allowed these four entities to "sell the securities lying in their demat accounts as on the date of the interim order, other than the shares of the firms which are suspended from trading by the concerned exchange, in orderly manner under the supervision of the exchanges so as not to disturb the market equilibrium and deposit the sale proceeds in an interest bearing escrow account with a nationalised bank."
Also, they are permitted to utilise up to 25 per cent of the value of their portfolio for their business purposes and for meeting other expenses.
Sebi has allowed these entities to subscribe mutual funds units including through Systematic Investment Plan (SIP) and redeem the subscribed units.
They are permitted to avail the benefits of corporate actions like rights issue, bonus issue, stock split and dividend.
