Mumbai: Market regulator Sebi has barred two entities from the securities market for a period of one year after an investigation into unfair trading in the shares of four companies including Temptation Foods and Cals Refineries.
As per an order, dated November 15 and released on Friday, Sebi said that Flex Trade and Rashmi Jain are being restrained from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner for a period of one year.
However, Sebi said it has discontinued its earlier interim directions restraining Rashmi Jain's husband Sudhir Jain and another entity Beejay Investment & Financial Consultants from the securities market in the same matter.
Sebi said that Rashmi Jain and Flex Tube have been found to be involved in circular trading of shares of four companies -- Temptation Foods, Confidence Petroleum India, Cals Refineries and Shree Precoated Steels (presently known as Ajmera Realty & Infra India).
Sebi said that considering the facts and circumstances of the case and quantum of trading done by them, restraining both the entities from accessing the securities market for one year "would be appropriate for the violations committed by them."
Sebi said it had found inter-linkages among certain entities dealing in these scrips in the form of off-market transactions as well as synchronised deals. All these transaction happened between August 2007 and February 2009.
Meanwhile, Sebi said that Beejay Investment & Financial Consultants and Sudhir Jain have already undergone the restraint for more than three years.
"...The period of restraint already undergone by Beejay and Sudhir Jain vide the said orders is sufficient for the violations committed by them, " Sebi said.
Sebi said Flex Trade and Rashmi Jain were not covered in the interim order dated June 4, 2009.
As per the order, Sudhir Jain and Rashmi Jain are the directors of Beejay Investment & Financial Consultants and Flex Trade.