Sebi bars 11 entities from securities market
Jan 07 2014 , Mumbai
The Securities and Exchange Board of India found that 8 individuals had provided funds to certain entities which then fraudulently dealt in the shares of these three companies.
Based on its preliminary probe, Sebi had restrained all the 11 entities from the securities market through an interim order on May 10, 2013.
It had warned four individuals of "Pabari-Parikh Group" against trading through front entities in defiance of restraining orders against them.
In its latest order today, Sebi said the allegations and charges in the interim order remain undisputed and unchallenged by the entities and they have not been able to make any plausible defence.
"...The noticees (8 individuals and 3 entities) have not been able to make out a case for revocation or modification of the interim order," Sebi noted.
The barred individuals are: Jigar Praful Ghoghari, Kiran Bhiku Bhanaes, Jinal Apurval Rawal, Janak Chimanlal Dave, Dilipkumar Pukhraj Jain, Bhupesh Harischandra Rathod, Kishan Balaram Shigvan and Kiran Madhusudan Sheth collectively referred as Jigar Group.
The three firms are: Shree Shagun Financial Services, Oliwonders Financial Services and Neevan Capital Markets.
Sebi had examined the scrips of the three firms in view surveillance alerts on variation in their prices.
The regulator had observed that eight individuals had received funds from the barred Pabari-Parikh Group entities.
It was found that these individuals created artificial volumes in the scrips of the three firms, substantially traded amongst themselves and placed orders at a price higher than the last traded price and thereby contributed to the rise in price in Polytex India and Gemstone Investments.