Bhushan Steel falls 1.1% on Sebi order

MUMBAI: The shares of Bhushan Steel fell on Monday after market regulator Sebi barred some of its promoters from accessing the securities market, accusing them of misusing the stock exchange platform to generate long-term capital gains and, thus, converting unaccounted money into legitimate one.

On the NSE, Bhushan Steel fell 1.1% to close at 89.55 On Friday , the Sebi, in two seperate ex-parte orders, had barred 260 entities, including Brij Bhushan Singal, Neeraj Singal, Ritu Singal and Uma Singal from the securities market until further directions.

As per exchange filings, Brij Bhushan Singal, Neeraj Singal and Ritu Singal are named as promoters of Bhushan Steel. The three together held nearly 48% stake in the company as of September 30.

Sebi, in its order in the matter of First Financial Services, said that several preferential allottees such as those belonging to the Singal family, namely Brij Bhushan Singal, Neeraj Singal, Ritu Singal and Uma Singal, indirectly received the funds back from First Financial.

“..events prima facie indicate that money received through preferential allotment were again routed to the same source ie, the Singal family. Inquiry also revealed that members of the Singal family have been preferential allottees in such type of companies which have a history similar to that of First Financial.

From the above facts, it prima facie emerges that a number of entities who were preferential allotees in the present case, were regularly investing in companies for namesake and the money invested by them in these companies was being returned to them indirectly,“ the Sebi said.