10,768.05-45.4
Stock Analysis, IPO, Mutual Funds, Bonds & More

Sebi bans 2 entities from capital markets for four weeks

According to Sebi, BP Fintrade and BP Comtrade are connected to each other.

PTI|
Last Updated: May 28, 2020, 08.20 PM IST
0Comments
TNN
SEBI-TNN
Sebi said that the two entities will at all times exercise due care and caution while trading in market and adopting strategies that may have an impact on fair price discovery of the scrips.
New Delhi: Sebi on Thursday barred BP Fintrade Pvt Ltd and BP Comtrade Pvt Ltd from capital markets for a period of four weeks for manipulative trading in the scrip of Blue Blends (India) Limited.

It further said that the two entities will at all times exercise due care and caution while trading in market and adopting strategies that may have an impact on fair price discovery of the scrips.

Sebi conducted an investigation between September 2015 and April 2016 into the scrip of Blue Blends to determine whether the movement in the price of the scrip was on account of normal trades or due to any act of price manipulation.

According to Sebi, BP Fintrade and BP Comtrade are connected to each other, and the trade executed by these entities in the scrip of Blue Blends contributed to negative LTP (Last Traded Price).

The trades were executed with an intention of manipulating the price of the scrip, and such trades were not a significant proportion of the total trades executed by the entities, Sebi said in an order.

"Given the repeated nature of the trades for minuscule quantities that were below the LTP, for which no justifiable reason has been provided by the noticees (the two entities), I am compelled to conclude that such trades were executed with an intention to manipulate the price of the scrip," Sebi Whole Time Member G Mahalingam said in the order.

The trades of these entities, especially the trades for minuscule quantities below LTP, violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.

Accordingly, the regulator has restrained the entities from "buying, selling or otherwise dealing in the securities including units of mutual funds, either directly or indirectly or in any other manner whatsoever, for a period of four weeks".

"In view of the current COVID-19 related lockdown, I direct that this order shall come into force from the date of reopening of the Securities Appellate Tribunal," Sebi said.
(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

Also Read

Sebi seeks clarification on CAMS IPO

Sebi eases compliance norms for FPIs

Jhunjhunwala and family get Sebi notices

Sebi modifies investment framework for AMCs

Sebi modifies investment framework for AMCs

Sebi releases framework for regulatory sandbox

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service