Exelon Infrastructure, its promoter, six directors and 16 other entities from the capital markets for up to 5 years for indulging in fraudulent trade practices have been banned by Sebi.
New Delhi: Exelon Infrastructure, its promoter, six directors and 16 other entities from the capital markets for up to 5 years for indulging in fraudulent trade practices have been banned by Sebi.
Besides, it has ordered the company's promoter Cementex to disgorge the profit of Rs 84.2 lakh (rpt) lakh, along with interest, made by it.
The regulator has prohibited the company, its promoter and directors from buying, selling and dealing in the securities markets for five years, while trading ban has been imposed for three years on 16 other entities, Securities and Exchange Board of India (Sebi) said in an order passed yesterday.
Exelon and its directors allegedly made corporate announcements of a positive nature to BSE, without any intention of implementing them. These announcements were intended to increase the price and to attract interest of investor, Sebi said.
These entities are "responsible for manipulating the scrip through the series of unfulfilled corporate announcements that spanned for three months from January 2011 to March 2011".
"In this case the promoter in connivance with the six directors of the company had a real role in manipulation. It not only made misleading corporate announcements but also exited the company at the opportune time, thereby booking huge profit of Rs 84,19,546 to their credit," the regulator said.
Besides, 16 other entities indulged in price manipulation by manipulating the new high price (NHP) and last trading price (LTP), Sebi said.
With PTI Inputs