Sebi bars 3 promoters of P M Telelinnks, 10 others from capital market

Market regulator Sebi today barred three promoters of P M Telelinnks along with 10 other people from accessing the capital market for alleged fraudulent dealings in shares of the company.The ban has been imposed for alleged fraudulent dealings in shares of P M Telelinnks and 8K Miles Software Solutions.Securities and Exchange Board of India (Sebi) has banned P M Telelinnks promoter and managing director Gulab Chand Pukhraj Surana and two other company promoters -- Ravi Pukhraj Surana and Dipin Surana -- from dealing in the securities markets, either directly or indirectly, till further orders.Similarly the regulator has also prohibited 10 other individuals referred to as " Shah/Patel Group " entities from dealing in the capital market."...three promoters, one of whom is also the Managing director, of P M Telelinnks and the related/connected entities of Shah/Patel Group indulged in fraudulent and manipulative trading that resulted in concentration of volumes," Sebi said in an interim order."The trading in the scrips of P M Telelinnks and 8K Miles was undertaken amongst themselves without intending to transfer the beneficial ownership of shares and to create artificial volume," it added.Sebi had received alerts from its Surveillance System relating to dealings in the shares of P M Telelinnks.It was observed that during the period August 1, 2011 to May 23, 2012 the price of the scrip rose substantially after which the scrip witnessed a gradual fall in its price.Considering the abnormal and sharp price movements in the scrip, dealings and trading pattern in the shares of the P M Telelinnks were examined for the period August 1, 2011 to September 30, 2012.It was revealed that during the period the firm's net profit had declined for the quarter ending June 2012."It was prima facie observed that financial results of the PMTL do not justify the price rise in the scrip," Sebi said.Preliminary probe by Sebi found that Gulab, Dipin, Ravi and the entities of Shah/Patel Group had substantially traded in the scrip of the P M Telelinnks.Similar price movement and pattern of dealings on the BSE in the scrip of 8K Miles were found and it was observed that Gulab, Dipin, Ravi and entities of Shah/Patel Group had also traded in the scrip of the firm.It was noted that as per disclosures made by 8K Miles to BSE, Gulab, Dipin and Ravi were among its promoters till December 2010. However, Gulab and Ravi were directors of the company till September 3 last year."...this is a fit case where, pending detailed investigation, urgent action is required to be taken by way of an ad interim ex-parte order to prevent any further harm to investors and the securities market," Sebi said.