Market regulator Sebi has eased curbs on 40 entities against whom it had taken action in two different cases of alleged misuse of stock market platform for tax evasion and suspected money-laundering. The entities, which were barred from the securities market, have now been given certain relaxations, including permission to deal in government securities and invest in ETFs (exchange-traded funds). Besides, they can enter delivery-based transactions in the cash segment in NSE Nifty 500 index as well as S&P BSE 500 shares and subscribe to mutual funds.
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Among others, these entities can tender shares lying in their demat account in any open offer/delisting under the relevant Sebi regulations.
In the case of Kailash Auto Finance, the watchdog in March had barred 246 entities after they were found to have indulged in a web of “make-believe” trades to artificially bump up share prices and trap gullible investors. Out of them, 36 have been given the relaxations.
In a separate case involving Dhyana Finstock, Sebi had barred 76 entities in June. Now, relaxations have been extended to five of them.
“I deem it appropriate to provide relaxations so as to address the issues of the personal and business exigencies or other liquidity problems,” Sebi Whole-time Member Rajeev Kumar Agarwal said in the matter of Kailash Auto.
As per the latest orders, the entities for whom relaxations have been extended can sell the securities lying in their demat accounts as on the date of interim orders. This will exclude shares of the companies which are suspended from trading by the stock exchanges concerned.
Besides, sale proceeds lying in the escrow account can be used for certain purposes.
In two separate orders, Sebi said, “Up to 25 per cent of the value of the portfolio as on the date of the interim order or the amount in excess of the profit made/loss incurred or value of shares purchased to give exit, whichever is higher, may be utilised for business purposes and/or for meeting any other exigencies or addressing liquidity problems etc.”
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