Sebi asks seven entities to disgorge Rs 5.75 cr fraudulent gains made in Ruchi Soya shares

Mumbai: The Securities and Exchange Board of India (Sebi) has asked seven entities to disgorge a total of Rs 5.75 crore of ill gotten gains made through alleged fraudulent trade practices in the shares of Ruchi Soya Industries in 2012.

The regulator had issued show cause notice in 2017 to seven entities connected to each other including Aventis Biofeeds Private Limited (now amalgamated with Immix Trade), Navinya Multitrade Private Limited, Uni24 TechnoSolutions Private Limited, Sunmate Trade Private Limited, Shreyans Credit and Capital Private Limited, Betul Oils and Feeds Private Limited and Betul Minerals and Constructions Private Limited.

The show cause notice alleged that some of these entities contributed to the price rise in the shares of Ruchi Soya Industries during the last 30 minutes of trading at NSE cash market on September 27, 2012 in order to influence the settlement price for the futures contracts of Ruchi Soya expiring on the same day.

The regulator alleged that some of these entities had long positions in the futures of Ruchi Soya expiring on September 27, 2012 and thus, benefitted from the price rise in the cash market.

Sebi’s investigation in the trading activities for the last half hour of trading of these entities in the shares of Ruchi Soya on September 27,2012, revealed that 1.32 crore shares were traded during last half an hour which was 84.04% of the market traded volume of the day.

The last traded price of the scrip at the end of the day was Rs 87.40. However, the settlement price of the futures contracts was Rs.78.65.