Sebi asks 20 entities to disgorge over Rs 3.3 cr

The amount has to be paid jointly and severally by the entities, an order said.

The order follows an investigation carried out by Sebi between September 2011 and September 2012. During the probe, Sebi found that certain entities — Beejay Investment and Financial Consultants, Sudhir Jain and Eversight Tradecomm — who were earlier barred from accessing the securities market, engaged in trading.

The debarred entities transferred funds directly to trading entities — Neelanchal Mercantile, Divyadrishti Merchants and Divyadrishti Trader, and in some cases, they transferred the funds to these entities indirectly through some conduit entities.

The conduit entities are Stupendors Traders Pvt Ltd and Flex Trade Pvt Ltd.

The trading entities in turn transferred such funds to various stock brokers.

Thus, the debarred entities had adopted a circuitous approach to access the securities market in order to circumvent the restraint orders passed by Sebi.

Apart from the firms, the regulator has also passed directions against the directors of the respective companies.

“During the investigation period, there were 120 instances of fund flows from the debarred entities to the trading entities for a total amount of Rs 59,67,00,000,” the order noted.

The trading entities and the conduit entities enabled the debarred entities to access the securities market in contravention of the Sebi directions passed in an interim order in June 2009 and confirmatory orders in January 2010.

For violation of market norms, Sebi directed 20 entities to disgorge Rs 3,30,52,904 and has also restrained certain entities from accessing securities market for varying periods.