SEBI orders impounding unlawful gains from 18 entities
The amount includes interest of Rs 8.45 crore for the period from October 1, 2012 to June 15, 2016.
New Delhi: Clamping down on manipulative trading activities, SEBI has ordered impounding of unlawful gains worth over Rs 27.44 crore from 18 entities, including six companies.
The matter relates to manipulative activities by way of synchronised trading through connected entities. In the order, dated June 16, SEBI has directed impounding of alleged unlawful gains to the tune of of Rs 27.44 crore from the 18 entities.
The amount includes interest of Rs 8.45 crore for the period from October 1, 2012 to June 15, 2016. The entities, include Eversight Tradecomm, Beejay Investment & Financial Consultants, Stupendors Traders, Neelanchal Mercantile and Divyadrishti Merchants.
Back in June 2009, the watchdog had restrained Eversight Tradecomm, Beejay Investment & Financial Consultants and Sudhir Jain from the securities market till further orders. These directions were confirmed through separate orders in 2010.
The earlier matter pertained to alleged manipulative trading by certain connected entities, in the scrips of Cals Refineries, Confidence Petroleum India, Bang Overseas, Shree Precoated Steels (now Ajmera Realty & Infra) and Temptation Foods.
A probe by the Securities and Exchange Board of India (SEBI) found that the entities indulged in manipulative trading activities by transferring funds through connected entities and allegedly made unlawful gains.
Noting that all the six entities are private limited companies, the watchdog said that as directors are responsible for the conduct of such firms, "they are also made liable for the alleged unlawful gains made by Beejay and Eversight".
The current investigation was focused on the fund flows observed from the bank accounts of Sudhir Jain, Beejay Investment & Financial Consultants and Eversight Tradecomm, under reference from the Financial Intelligence Unit (FIU) and the corresponding bank accounts of the entities facilitating trades of the debarred entities, the order said.
Hence, SEBI has been asked to conduct a fresh probe into the matter covering other bank accounts that were used for trading by the entities, "which would have been used to aid the debarred entities to trade in the market".