The Securities and Trade Board of India (SEBI) on Thursday prohibited 12 entities, together with the promoter of V Marc India Ltd, from taking part within the securities market as a consequence of their involvement in a misleading scheme geared toward manipulating volumes and costs of the corporate’s shares. In Addition, the regulator confiscated wrongful beneficial properties totalling Rs 6.38 crore obtained by sure entities via the manipulative scheme, in keeping with the assertion in an interim order. This case primarily revolves round fraudulent and manipulative buying and selling actions regarding the shares of V Marc India Ltd, which is listed on NSE’s SME phase and seems to have been orchestrated by the promoter, firm administration, and related events.
In its ruling, SEBI discovered prima facie proof suggesting that V Marc’s promoter and MD, Vikas Garg, together with Sandeep Kumar Srivastava, former Entire Time Director of the corporate, enlisted the companies of Prijesh Kurani to ‘function the market’. The order additional highlighted that Kurani, along with utilising his personal and affiliated entities’ buying and selling accounts, employed accounts linked to Garg to govern the inventory.
Furthermore, Garg and the corporate administration allegedly funnelled funds via their affiliated entities to Kurani to execute the fraudulent scheme. The purported fraudulent actions commenced shortly after the scrip was listed on April 8, 2021.
“The impression of this alleged fraudulent scheme is obvious within the method volumes surged and costs elevated after which many of the entities — PV Manipulators– in addition to the IPO subscribers – exited absolutely. The shares offloaded have been bought by public shareholders, resulting in the rise of their numbers as effectively,” stated SEBI.
Consequently, SEBI has prohibited 12 entities “from shopping for, promoting or dealing within the securities market or associating themselves with the securities market, both straight or not directly, in any method by any means till additional orders.”
Apart from Garg, Srivastava, and Kurani, SEBI has barred the next entities: Sudhir Gupta, Dharini Kurani, Rekha Kurani, Surbhi Aggarwal, Vinod Vilas Sable, Seema Garg, Madhu Srivastava, Jai Kishorr Singhal, and Seema Agarwal.
SEBI’s investigation, spanning from April 9 to April 30, 2021, was supported by information retrieved from Kurani’s cell gadget, confiscated throughout a regulatory “search and seizure operation” carried out at his residence in Could 2022. This operation was a part of an investigation into the “Entrance Working of Trades of Axis Mutual Fund” matter.
The info retrieved from Kurani’s gadget, notably WhatsApp messages involving entities talked about on this order, together with a signed settlement between sure entities, has served as essential proof on this case.
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