Markets regulator, SEBI on Monday restrained 10 entities and four people from accessing the securities market for six months for their involvement in illegal trading in Rutron International Ltd. Shares.
The Securities and Exchange Board of India (Sebi) conducted an investigation into the trading of the shares of Rutron International Ltd, currently known as Pazel International Ltd, for the period from May 3, 2012 to November 28, 2014.
The regulator noticed during the investigation that the script had been suspended for 12 years and that the suspension had been lifted in July 2011.
Subsequently, trading in the script saw a continuous increase from Rs 5.25 on May 3, 2012 and, as per the regulator, hit a level of Rs 269.70 on September 10, 2013.
"On the basis of the aforementioned conclusions, the inquiry noted that the 3 Noticees were not behaving as legitimate traders and instead manipulated the price of the Rutronand script by operating in a coordinated fashion, creating a false impression of trading in the Company scrip," the SEBI said.
It also said that the current portfolios of shares in the Notices, including units of mutual funds, remain frozen throughout the time of restraint.
During the relevant time, the firm made no announcement to entice investors to purchase the script that was also available on the exchange platform in off-market transactions, Sebi said.