Pref allotments, bonus and IPO: Sebi bans 239 players for misuse of SME trading platform

SEBI had noticed huge rise in the traded volumes and prices of Eco Friendly Food Processing Park,Esteem Bio Organic Food Processing,Channel Nine Entertainment and HPC Biosciences.

Jun 30, 2015 02:06 IST India Infoline News Service

The Securities and Exchange Board of India (Sebi) has barred 239 individuals and entities from accessing the securities market for misusing the small and medium enterprises(SME) trading platform of exchanges to launder money and to evade taxes, according to reports.

A report says that SEBI had noticed huge rise in the traded volumes and prices of Eco Friendly Food Processing Park,Esteem Bio Organic Food Processing,Channel Nine Entertainment and HPC Biosciences.

These companies were listed on the SME segment of BSE during January 2013 to March 2013, says report.

During this period, the four companies raised funds through series of preferential allotments.

Consequent to the preferential allotments and bonus issues,the share capital of these companies increased manifold.

Related Story

Blogs & Personal Finance