Market regulator SEBI today came down heavily on private sector lender Bank of Rajasthan

RELATED ARTICLES Sebi asks firms to disclose details of utilisation of warrants Sebi to give MCA names of over 500 cos who violated CIS rules Sebi seeks external consultant for overhaul of role, structure Sebi opens new window for promoters to dilute stake Sebi imposes Rs 40 lakh penalty on four individuals

saying that promoters, including Tayal Group, have fraudulently hiked their stake in the entity.

The market watchdog has also banned Tayal entities and several others from trading in securities in any form till further directions.

"On paper their holding seems to have reduced but in reality, the holding of the promoters (controlled by the Tayal group) along with their front entities, had actually increased from 44.71% as at quarter-ending June 2007 to 60% as at quarter-ending March 2008 and stood at 55.01% as at quarter-ending December 2009," SEBI said in a statement late last night.

It further added that while the promoters apparently conveyed the impression that they were reducing their shareholding, they did not in fact dilute their controlling stake in Bank of Rajasthan.

"On the contrary, they had actually increased their shareholding in a deceptive and fraudulent \manner with the active connivance of others," the statement said.

In its order, SEBI said, "It is imperative that the groups of entities including the promoters, the other Tayal entities, the Yadav Group and the Silvassa Group restrained from dealing in the securities markets till further directions."