The Hindu Business Line : SEBI bar on directors of Ind Tra Deco, Eltrol

SEBI has cracked down on the directors of two more companies with immediate effect for alleged rigging in the stock price of their companies. The two companies are Ind Tra Deco and Eltrol.

The market regulator has said the promoters and directors of these companies cannot buy or sell shares in their companies.

Eltrol cannot issue fresh shares till further orders from the market regulator, a release by SEBI said today.

Some stockbrokers too have been directed not to deal in the shares of these two companies.

SEBI found that Ind Tra Deco promoters, directors and persons acting in concert with them were offloading the shares of the company between March and September this year while the company made positive announcements including stock split.

The SEBI also found creation of artificial volume through bulk and cross deals in the stock of the company.

In Eltrol, SEBI said the company raised funds through preferential issue to NBFCs and diverted these funds to stock market activities. The source of funds of these NBFCs is not known and probably these NBFCs had taken fixed deposits from the public, the repayment of which could be imperilled by the unwise if not blatantly manipulative action of the promoters and management of these NBFCs, SEBI release said.

The stock price of the company also jumped sharply between March and September this year from Rs 0.47 (for Re 1 share) to a high of Rs 3.52.

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SEBI bar on directors of Ind Tra Deco, Eltrol