Trading ban stays on 5 entities, revoked for 12 in castor seeds case: Sebi
Markets regulator Sebi has lifted its trading ban on 12 entities but decided to continue with debarment of five other entities, including Ruchi Global and Ruchi Soya Industries, in a case related to manipulation in castor seeds trading.
Through two interim orders, passed in March 2016 and May 2016, respectively, Sebi had barred a total of 18 entities from the securities markets for alleged fraudulent and manipulative trading in castor seeds on leading commodity bourse NCDEX.
Later in March 2017, the directions issued against one broker were revoked, while the restrictions imposed on the remaining 17 entities were confirmed. However, these 17 entities have been allowed to trade in commodity derivatives markets for hedging their physical market positions under the supervision of the exchanges.
In an order dated November 14, Sebi revoked the direction issued against 12 entities with immediate effect as the regulator did not find any adverse evidence against them with respect to their role in the manipulation in the trading in castor seed contracts at NCDEX.
Mid India Commodities, Neer-Ocean Multitrade, Investmart Commodities, Leo Global Commodities, Stride Multitrade, Vijay Saraf and Sisne Polymers are among the 12 entities.
However, the Securities and Exchange Board of India (Sebi) said it will continue its proceedings against five entities -- Ruchi Global, Ruchi Soya Industries, UKS Oils, Secunderabad Oils and National Steel and Agro Industries.
These entities had allegedly either traded or facilitated trade of castor seed contract on NCDEX (National Commodity and Derivatives Exchange).
NCDEX had suspended trading in castor seed contracts on January 27, 2016, pursuant to which Sebi also launched its probe in respect of trading in these contracts for the period beginning January 1, 2016.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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