In yet another case of price rigging, the Securities and Exchange Board of India barred 16 entities on Thursay, including the promoters of Atlanta, from selling or buying the company's shares for alleged price manipulation. Rajoo Barot, managing director, and Sachin Jain, company secretary, feature in the list.

Recently, the Sebi had taken action against Nissan Copper promoters for price rigging.

Shares of Atlanta, which were listed on September 25, 2006, rose from its offer price of Rs 150 to Rs 1,446 on January 17 -- 681 per cent rise in 55 trading days.

The Sebi has also asked exchanges not to approve the listing of Atlanta's convertible warrants and shares, till further directions. It also asked depositories not to dematerialise convertible warrants and shares issued upon conversion and not to allow stock-split plans.

The company had raised Rs 85.72 crore (Rs 857.2 million) by issuing convertible warrants at Rs 317.50. At its EGM on February 16, the company approved 1:5 stock split and further raising of funds through foreign currency convertible bonds.

Sensing something fishy in the sudden spurt in its share price, the Sebi advised the NSE and the BSE to conduct a probe. The probe concluded that Manish Marwah/Dilip Nabera Group, Atul Shah Group and Nirmal Khotecha Group made large scrip purchases during the period.

It also said the employees, who were allotted shares, had immediately transferred the shares through off-market transactions, to persons connected with the company.

"It appears that the company promoters, their strategic investors and other related entities of Marwah/Nabera group have abused the stock exchange mechanism, the listing agreement and regulations to unfairly maximise their wealth at the cost of lay investors. Prima facie findings show its promoters and entities seem to have violated the Sebi regulations," the order said.

The Sebi is further investigating the matter.