Market regulator Sebi has confirmed its interim order banning 21 entities in a case related to tax evasion and illegal gains through misuse of stock exchange mechanism. A detailed investigation is on against others.
Sebi in an interim order dated June 1 had barred Dhyana Finstock and 75 other entities, including the aforesaid 21, from the market for using the securities system to artificially bump up volume and price of the scrip to provide illegitimate gains to preferential allottees. The end purpose, according to the Securities and Exchange Board of India, is to claim long-term capital gains (LTCG) benefits.
As per the interim order, the probe by Sebi and BSE began after the stock exchange received complaints from several investors in July last year that they have entered into buy trades in Dhyana on July 27, 2015 based on the stock tips received through SMS.