Sebi bans Adani for 2 yrs

The Securities and Exchange Board of India (Sebi) has banned the promoters of Gujarat-based Adani group from the capital market for two years for their role in the manipulation in the shares of Adani Enterprises Limited In the order issued on Monday, Sebi whole-time member TC Nair restrained the promoters of Adani — Adani Agro Private Limited Adani Impex Private Limited Crown International, Shahi Property Developers Private Limited Adani Properties Private Limited Advance Exports and Intercontinental India — from accessing the securities market either directly or indirectly and also prohibited them from buying, selling or otherwise dealing in securities for two years. Sebi’s investigation had revealed that the share price of Adani moved up sharply from the opening price of Rs 495 on November 1, 1999 to reach a high of Rs 1,300 in December 1999 on the BSE. The scrip started falling and reached a low of Rs 570 in the month of May 2000. The scrip again started increasing and reached a high of Rs 1,111 in the month of July 2000. Then it witnessed a declining trend and reached a low of Rs 209 in March 2001. “It was found in the investigation that entities connected with Ketan Parekh (KP entities) had indulged in certain manipulative activities such as synchronised trading/ circular trading and creation of artificial volume to influence the price in the scrip of Adani,” Sebi said. Investigations revealed that there was movement of shares as well as funds between the Adani group and KP entities. Such funds and shares were used by KP entities for the purpose of manipulating the securities market and for making payment at the time of settlements in the stock exchanges. “It was also found that the promoter entities of Adani traded in the scrip of Adani during the relevant period,” Sebi said. “The Adani group had contended that they were not aware about the counter party for the sale transactions of 15.8800000 shares executed through the broker Triumph International.”