Market regulator Securities and Exchange Board of India (SEBI) has barred 65 entities from markets for two years while directing 27 entities to disgorge the allegedly unlawful gains worth Rs40.23 crore earned by manipulating the share price of Yamini Investment. SEBI identified 102 entities connected with Madhur Buildcon Pvt Ltd, one of the promoters of Yamini Investment, traded in the scrip and provided exit at an inflated price to certain shareholders of the company. SEBI observed unusual fluctuations in the price and volume of Yamini Investment between September 2013 – 2015 and investigated the scrip to determine whether the price movement was due to normal trades or any act of price manipulation.
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An in-depth an analysis of the trading in the scrip on BSE during the investigation period, SEBI found that certain entities trading in the scrip were allegedly connected based on know-your-customer (KYC), off-market transfers, fund transfers and common directors. Initially, two groups of connected entities were identified – a group consisting of 88 entities (Madhur group) and another group consisting of 14 entities (PCB group).
SEBI’s show cause notice ( SCN) refers to the 102 entities collectively as the Madhur group alleged that 14 entities (noticees 1 to 14) had manipulated the price of the scrip during the investigation period.
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The market regulator investigation revealed that 102 entities of the Madhur group had cumulatively bought 57,884 shares during this period, representing 93.03% of the total market volume, and sold 33,629 shares, representing 50.46% of the total market volume.
“The connected entities of the Madhur group (102 entities) traded in the scrip during the investigation and provided exit at an inflated price to certain shareholders of the company. These shareholders had received shares of Yamini Investment pursuant to a preferential allotment made as part of a scheme of amalgamation sanctioned by the Bombay High Court (HC).” the SCN noted explaining the modus operandi.
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SEBI directed 27 entities including Gopal Bansal (HUF), Sanjeev Goel, Rajni Goel, Satvinder Kaur, Harvinder Singh, Gurupreet Sangla, Amit Khandelwal, Renu Agarwal, Seema Sangla, Ankit Khandelwal, Harvinder Singh (HUF), Kuldeep Kaur, Gyan Prakash Rai, K Ashok Kumar (HUF), K Ashok Kumar, Manju Rai, Ashokkumar Aashish Bohra, Vimala Bohra, Nisha Sharma, Shubhra Khandelwal, Maya Devi Khandelwal, Nidhi Khandelwal, Dropdi Devi, Rajeev Goel (HUF), Hans Raj Agarwal, Ashok Sneha Bohra and Rahul Goel to disgorge the unlawful gains totalling Rs 40.23 crore.
The market regulator barred 65 entities from markets for two years including Anax and Fidelo Power and Infrastructure Ltd (Fidelo) that merged with Yamini Investment, Maheshwari Financial Services Pvt Ltd, Autolite Agencies Pvt Ltd, Toor Finance Company Ltd, Stellar Capital Services Ltd, Premlal Roy, Aries Commercials, Moonlight Udyog, Shri Ram Traders, Chandra Prakash Balkisanji Laddha, Anshu Kataruka, Hetab S Kangad (HUF), Vindyavasini Agency Pvt Ltd, Mkr Trading Pvt Ltd, Fortunate Infra Developers Pvt Ltd, Linkup Vintrade Pvt Ltd, Omkara Dealer Pvt Ltd, Overall Logistics Pvt Ltd, Dace Exim Pvt Ltd, Imagine Logistics, Natural Investment Management Pvt Ltd, Dhirga Marketing Pvt Ltd, Ecospace Infotech Pvt Ltd, Etricks Enterprises Pvt Ltd, Everblink Agency Pvt Ltd, Headfirst Vinimay Pvt Ltd, Richi Consultants Pvt Ltd, Vighnaharta Infra Developers Pvt Ltd, Veenit Builders Pvt Ltd, Veepra Real Estate Consultants Pvt Ltd, Goodpoint Commodeal Pvt Ltd, Krushana Infra Property Pvt Ltd, Rajputana Digital Mediapvt Ltd, Goldensight Commotrade Pvt Ltd, Surakshit Merchants Pvt Ltd, Surabhi Dealmark Pvt Ltd, Sanshipt Broking And Consultancy Pvt Ltd, Ram Yadav, Nicky Marmo Ltd, Optimal Farms Pvt Ltd and Bij Buildcon India Pvt Ltd.
