Zylog Systems hits lower circuit as SEBI bars promoters

MUMBAI: Shares of Zylog Systems were locked at 5 per cent lower circuit after the market regulator Securities and Exchange Board of India barred its Chairman from the securities market on charges of fraudulent trading activities.

Chairman and CEO Sudarshan Venkatraman, MD and Chief Operating Officer Ramanujam Sesharathnam and CFO S P Srihari are among the entities barred by the Securities and Exchange Board of India (Sebi) in its interim, ex-parte order, until further orders.

Besides, the regulator has restrained the company's whole time director Parthasarathy Srikanth, his wife Srikanth Sripriya and Sthithi Insurance Services -- a promoter entity of Zylog and owned by Venkatraman and Sesharathnam -- from the capital market.

Imposing the ban, Sebi cited many factors including repeated instances of concealment of information, dissemination of false and misleading information by promoters and non-compliance with existing norms.

At 10:10 a.m.; the stock was at Rs 30.50, down 5 per cent, on the BSE. Around 9,780 shares were traded in the counter against two-week average of 43,398 shares.