Sebi dismisses fraudulent trade charges against 10 entities

NEW DELHI: Capital markets regulator Sebi has disposed of fraudulent trading charges against 10 entities, saying "there is no need to pass any direction" against them.

It was alleged that Karthik Ramakrishnan, promoter and Managing Director of Eonour Technologies had transferred his shares to nine other entities in off market and those nine entities offloaded such shares through off-market/market transactions.

They have been charged for violating Prohibition of Fraudulent and Unfair Trade Practices ( PFUTP) norms.

According to Securities and Exchange Board of India (Sebi), the allegations do not suggest fraudulent and unfair dealings on the basis of preponderance of probability.

There is no material record to indicate that the off-loading of shares by Ramakrishnan to entities resulted in manipulation in the scrip, Sebi said.

Further, all the transactions were disclosed to the stock exchanges, it added.

The regulator is satisfied by his claims that he sold his shareholdings to utilise the sale proceeds in order to solve the company's fund shortage problem and not to cause any loss to uninformed innocent investors as alleged.

Accordingly, Sebi has decided to dispose of the complaint.