The Hindu Business Line : SEBI bars Adani group promoters for 2 years

Kolkata May 28 SEBI on Monday barred market entry of Adani Group promoters for 2 years for alleged links with Mr Ketan Parekh (KP) in manipulating Adani Exports (now Adani Enterprise) stock in the period between October 1999 and March 2001.

The regulator also prohibited Adanis from trading in any shares. Dr T.C. Nair, whole time member of SEBI, in his order said the promoters' of Adani group outfits — Adani Agro, Adani Impex, Crown International, Sahi Property Developers, Adani Properties, Advance Exports and Intercontinental India — have been "restrained" from accessing the securities market, either directly or indirectly, and also prohibited from "dealing in securities, in any manner whatsoever".

This order pertains to one of the innumerable cases, which were taken up by the regulator after a market fraud that surfaced in March 2001. Orders on several others are still awaited.

Among those cases, some are being adjudicated by the SEBI whole time members or special adjudicating officers or the Chairman himself. The rest of the matters are pending in the courts of law, including a special court.

Dr Nair further said: "findings show that Adani group was party to the design and activities of KP and his entities". Dr Nair felt that the charges of aiding and abetting KP entities in manipulating Adani Exports stock, levelled against the promoters of Adani group, was proven.

SEBI investigations alleged that the Adani group outfits in connection with KP entities had indulged in synchronised and circular trading and also created artificial traded volume to influence the price of Adani Exports stock.

The SEBI probe also found movement of funds and shares between KP entities and the Adani group. The Adani group entities also traded in Adani Exports shares, the SEBI investigation had found.

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