Ban on 17 entities to stay in castor seed case; 1 revoked:Sebi

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By Fast Kashmir on 08/03/2017. 7 Comments

Ban on 17 entities to stay in castor seed case; 1 revoked:Sebi

New Delhi, Mar 8:  Sebi today lifted trading ban on one broker but decided to continue with debarment of 17 other entities in the case related to manipulation in castor seeds trading.

The latest order comes nearly a year after the regulator began to crack down on alleged irregularities in the commodity derivatives market.

Through two interim orders, passed in March and May last year, respectively, Sebi had barred a total of 18 entities from the securities markets for alleged fraudulent and manipulative trading in castor seeds at the NCDEX.

Providing a partial relief to 17 entities that would continue to face the ban, they have been allowed to trade in commodity derivatives markets for hedging their physical market positions under the supervision of the exchanges.

In its order today, Sebi lifted the ban imposed on Narsinpuria Korodimal and directed him to ensure that all his future dealings in the securities market are done strictly in accordance with law.

“Trading pattern of Korodimal suggests that he is a small trader and in the present matter long position of 50 tons held by him in castor seed contracts is insignificant compared to the total position held collectively by the other entities as brought out in the interim orders,” Sebi said.

Therefore, his long position in castor seed contract has no impact on overall combined position of all entities which was nearly around 220,000 ton, it added.

“Further, available evidence, in the form of financial transactions or otherwise, does not lead to any suspicion that Korodimal is connected to the other noticees or that he acted in concert with them,” the regulator said.

However, Sebi has decided to continue with the ban imposed on 17 entities, including some well-known names in the commodities market.

These entities failed to give any “satisfactory explanation for their acts and omissions as described in the interim orders and have not been able to make out a prima facie case for revocation of the interim orders”, Sebi said in today’s order.

Ruchi Soya Industries, Ruchi Global, National Steel and Agro Industries Ltd, Mid India Commodities, Neer-Ocean Multitrade, Investmart Commodities, Leo Global Commodities, Stride Multitrade, Vijay Saraf and Sisne Polymers are among the 17 entities on whom the trading ban would continue.

These entities had either traded or facilitated trade of castorseed contract on leading commodity bourse NCDEX (National Commodity and Derivatives Exchange).

NCDEX had suspended trading in castor seed contracts on January 27, 2016, pursuant to which Sebi also launched its probe in respect of trading in these contracts at NCDEX for the period beginning January 1, 2016.


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