Some of the entities of Tayal group, promoter of Bank of Rajasthan (BoR), which

RELATED ARTICLES 6 out of 10 stocks on BSE gain in Jan rally Euro, stocks fall on worries over Greek debt Biocon slips over 4% on weak Q3 numbers FIIs shop for stocks worth $1.16 billion in first 20 days of 2012 Telecom stocks up on Trai’s new proposal

were barred from the stock market by the Securities and Exchange Board of India (Sebi) on Monday, have a history of market manipulation.

On September 7, 2007, the stock market regulator found five Tayal group entities — EDC Securities, Jayshree Petrochemicals, Nitish Nayak, Avery Procon and Axon Realpro — rigging share prices of two promoter group companies — KSL & Industries and Jaybharat Textile & Real Estate.

At that time, Sebi had restrained these five entities from dealing in the shares of KSL and Jaybharat Textile. This was mentioned in the latest Sebi order banning 100 entities related to the Bank of Rajasthan for fraudulent behaviour.

“This is not the first instance that a few of these entities have been involved in investigations leading to regulatory actions by Sebi,” KM Abraham, whole-time Sebi member, said in the Sebi order, issued late on Monday.

Interestingly, the names of the two brokers — RR Chokhani and Finquest Securities, whose role is being investigated in the Bank of Rajasthan case — also figured in the September 2007 Sebi order.

Meanwhile, G Padmanabhan, managing director and CEO of Bank of Rajasthan, said as per the legal opinion obtained by the bank, Tayals are not its promoters.

“The bank doesn’t consider them as its promoters... they are just dominant shareholders in the bank,” he said.

The bank was still studying the order issued by the market-regulator and will come up with appropriate response later, Padmanabhan said.

Shares of Bank of Rajasthan slumped 6.66 per cent, or Rs 4.45, to Rs 62.35 on Tuesday on the Bombay Stock Exchange (BSE) following Sebi’s order.

Sebi was peeved that Tayals had increased their shareholding in the private sector lender from 44.71 per cent in the quarter ended June 2007 to 55.01 per cent in the October-December quarter 2009, although they had claimed they were actually divesting stake.