Sebi revokes ban against 9 firms in Ruchi Soya share case

Market watchdog Sebi has revoked its directions that barred nine firms from the capital

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market, in a matter related to price manipulation in shares of FMCG major Ruchi Soya Industries.

In February this year, the Securities and Exchange Board of India (Sebi) through an interim order had restricted the firms from accessing the capital market after it prima facie found that were connected with each other and had manipulated the closing price of Ruchi Soya shares in 2012.

In its latest order on the case, the regulator said that the matter required a detailed probe and that the interim order need not continue during the pendency of the investigation.

It also noted that the firms had "already undergone restraint of more than nine months since the interim order".

"...The balance of convenience at this stage is in favour of the noticees and the facts and circumstances of the case do not suggest any emergent or urgent reasons to continue with the directions issued against the noticees vide the interim order," Sebi said in the order dated December 6.

"...Hereby revoke the directions issued vide the ad-interim ex-parte order dated February 15, 2013 in the matter of dealing in the scrip of Ruchi Soya Industries Ltd against the said noticees," the regulator added.

Sebi, however said it may take appropriate action against the firms in the case, on completion of the investigation.

The firms against which the ban has been revoked are -- Shreyans Credit and Capital, Betul Minerals and Constructions, Aventis Biofeeds, Betul Oils & Feeds, Sunmate Trade, Moebius Credit and Capital, Navinya Multitrade, Uni24 Techno Solutions and Vision Millennium Exports.

An initial probe by Sebi had found that these firms had manipulated the closing price of Ruchi Soya's scrip on September 27, 2012, in the cash segment, which was the settlement price for derivative segment, to gain from their long positions in the futures of total 71.96 lakh shares of the company.

Among others, Sebi in its latest order had observed that there was no allegation that there were any premeditated synchronised trades among the entities.

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