Sebi bars Global Infratech, its directors, 12 individuals
Market regulator has banned directors for 2 years and others for 6 months for their roles in fraudulent scheme
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Markets regulator Sebi has restrained Global Infratech and Finance Ltd, its directors and 12 other individuals from the securities market for their roles in a fraudulent scheme of trading in the firm's shares.
The company and its directors Pravin Sawant and Jagdish Chander Sharma have been banned from the securities market for two years, while others have been restrained for six months, as per an order passed by Sebi on July 16. During their respective period of restraint, they are also restrained from associating themselves with any listed public company and any public company which intends to raise money from the public or any intermediary registered with Sebi. The investigation was conducted between June 2012 - September 2014. The firm had made two preferential allotments in January 2012 and June 2012 and transferred some of its preferential allotment proceeds to three entities. Besides, certain connected preferential allottees, who were connected to Global Infratech, and thereby connected to the individuals involved in price manipulation, sold their shares at the manipulated high price.
The shares were sold at the inflated/manipulated price for benefit. Sebi said that Global Infratech and its directors were also part of a scheme to manipulate the price of the shares to benefit connected preferential allottees.sebi, Global Infratech and Finance Ltd,
