Sebi bans 26 entities from capital markets for 6 months for fraudulent trading
Sebi banned about 26 entities from the capital markets for the next six months in charge of fraudulent and manipulative trading in the scrip of PSIT Infrastructure and Services Ltd.
Big names of the market like Puspal Chandra, Dilip Kumar Mandal, Sanjoy Chandra, Mina Chandra, Prakash Mulji Vora, Shilpa Maheshwari, Rajesh Kumar Maheshwari HUF are also in the list of 26 entities that Sebi banned.
From May 2012 to July 2015 investigation was conducted by the regulator in the trading and dealings in the scrip of PSIT Infrastructure and Services after they observed abnormal movement in the price of the scrip on BSE.
Sebi said, “Because of the non-genuine and manipulative scheme orchestrated by the entities not only the investors were defrauded and misled but it also impaired the integrity of the securities market.” The entities have violated the rules of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.
Apart from that if any entities have any kind of open positions in any exchange-traded derivative contracts, they have to close it within three months from the date of order or at the expiry of such contracts.