Sebi today barred more than 30 entities from the securities market for at least ten years for alleged fraudulent transactions in the shares of SMS Techsoft.
In February-March 2013, there was a burst of Short Text Messages (SMSs) mentioning buy recommendation for SMS Techsoft shares. An investigation found that various entities portrayed fraudulent transactions as genuine preferential allotment of shares. Further, they offloaded the shares allotted in the preferential allotment in the market thereby earning illegal profit.
Sebi had passed an order in the matter in 2013.
In its order today, Sebi said that over 30 entities have been banned from the securities market for a "period of 10 years from the date of completion of disgorgement" of illegal gains.
Besides, they have been restrained from associating themselves with any listed public company and any public company which intends to raise money from the public, among others.
They have also been directed to disgorge an amount of "Rs 6,78,85,716" along with a simple interest of 12 per cent per annum from the date of end of investigation period -- November 5, 2013 -- till the date of payment.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)