The entities barred by SEBI on Thursday from trading on stock exchanges on charges of manipulating share prices have decided to take remedial action against the market regulator's respective promoters from trading on the bourses.
This was for their alleged involvement in rigging stock prices ahead of issuance of convertible shares and private placement of institutional investors. Reacting to the order, Realty firm Ackruti City said it is taking legal advice to challenge the order.
"We are taking legal advice to challenge the order with the appropriate authorities," Ackruti City's Managing Director, Vimal Shah, said in a statement.
"As a matter of policy, we follow fair business practises and respect the law of the land," he added in the statement.
Welspun Wintex, a promotor group entity of Welspun Corp, said ,"We are going to approach higher authorities for relief after studying the subject order."
The company further said it is in full compliance with the prevailing rules, regulations and guidelines. Another Welspun's group entity Welspun Mercantile said, "We will work with the regulator to clear the position, and will seek appropriate remedies as advised."
It said the company is studying the contents and have sought professional advice. In an order, SEBI had said, "Murli Industries Ltd, Ackruti City, Welspun Gujarat Stahl Rohren Ltd and Brushman India and their respective promoters are directed to cease and desist from carrying out the activities... prima facie in contravention of the securities laws."
SEBI has also barred one Sanjay Dangi and his group firms from dealing with any kind of securities. This ban has been imposed on charges of share price manipulation.
According to the order, preliminary investigations showed a "well laid down strategy planned by promoters of the company (Murli Industries) along with Sanjay Dangi to manipulate the share price of the company before the issuance of the FCCBs."
