Stock market regulator Securities and Exchange Board of India (SEBI) has barred
seven entities from dealing in any securities on the day of their listing. The
SEBI ban follows investigations into alleged manipulation in placing trade orders
in some issues.
The banned entities include Latesh Chheda, Viren Kenia,
Bhavin Chheda, Chetan Rathod, Neptune Fincot P Ltd., Dhiren Pajwani and RSS Investment
Sebi said it had analysed listing-day dealings in shares of Pochiraju
Industries Ltd., Cambridge Technology Enterprise Ltd., Mindtree Consulting Ltd.,
Shree Ashtavinayak Cine Vision Ltd., Pyramid Saimira Theatre Ltd and Al Champdany
These entities had placed abnormally large orders of
shares at prices much below market prices on the first day of trading in these
issues, SEBI said in an interim order.
"Orders placed much below
the prevailing market price at the time of the listing of the shares became frivolous
or non-serious orders making no commercial sense," the SEBI order said.
"The intention of placing such orders was therefore not for genuine trading
but only for artificially enhancing the levels of demand, which constitutes a
manipulative practice in the market," the regulator said
entire large order quantity was revealed to the market in one stroke,
which is an uncommon practice. It is prima facie seen that such conduct on the
part of identified entities might not be consistent with anything other than market
manipulation," SEBI said.