SEBI revokes ban on 317 entities in Alka Securities matter
MDT/PTI 14 September 2012

Based on the preliminary findings in 2009 SEBI had barred 317 second-level entities identified in the interim order as used as conduits by Alka Securities, its promoters and other related entities

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has revoked its ban on 317 entities, earlier alleged to have been used by promoter and related entities of Alka Securities for involvement in circular trading, and allowed them to deal in the company's shares, reports PTI.
The case relates to a probe by SEBI into a spurt in the price and volume in the shares of Alka Securities Ltd (ASL) during the period of November 2008 to March 2009.
Based on the preliminary findings, SEBI had identified nine promoter level entities to have allegedly indulged in price manipulation, as also 42 other entities directly and 317 indirectly being part of the stock manipulation practices.
Consequently, SEBI passed an interim order against these entities in 2009, barring them from dealing in ASL shares.
SEBI said the completion of its investigation into the matter shows that the said 317 second-level entities identified in the interim order were used as conduits by ASL, its promoters and other related entities.
No further action, however, has been contemplated as against these entities pursuant to the investigation and therefore the interim directions issued by SEBI need not be continued, the regulator said in its final order dated 10 September 2012.
Accordingly, SEBI has decided to "revoke the interim directions issued vide ad interim ex-parte order dated 28 July 2009 (against the said 317 ) with immediate effect," the order said.
SEBI probe had found that ASL promoters had used off-market route to transfer shares to 42 first-level entities and these entities in turn dealt transferred them to other 317 'second-level' entities.
Further, the company, its promoters and directors were charged to have failed to provide mandatory disclosure for change in their shareholdings on various occasions. The shareholding disclosures made to BSE were incorrect and apparently false.
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