Poonawalla Fincorp case: Sebi lifts stock market ban on 8 entities

Relaxing its earlier directives, Sebi on Monday removed a stock market ban on eight entities regarding alleged insider trading activities in shares of Poonawalla Fincorp Ltd, formerly known as Magma Fincorp.

After passing a 62-page confirmation order, the regulator said the eight entities are now prohibited from buying, selling or dealing in PFL securities until further orders.



The temporary order, which passed in September 2021, was modified to the extent that credit and debit securities are allowed in the accounts of the above entities except for PFL securities, according to the regulator.

“The observations in this order are provisional in nature. The investigation is being conducted without being affected by any of the directions passed or any observation being made either in the provisional order or in the present order. Based on the outcome of this, Sepe said in the 62-page order on Monday that “Appropriate actions will start in accordance with the law.”

Apart from banning the eight entities, including seven individuals from the stock market, Sebi, in September 2021, also ordered the confiscation of illicit gains over Rs 13 crore.

“It should also be noted that all the entities have deposited the amount directed to be held under the temporary order in an escrow account, under which their bank accounts have been unfrozen.

“… Pending the completion of the investigation, the limitation imposed in the temporary order shall be amended thereby preventing the entities from dealing in securities and the continuation of the said restriction only in relation to dealing in Poonawalla Fincorp Limited (Magma), another order said.

The judgment relates to eight entities – Abhay Potada, Sumil Shah, Surabhi Kishore Shah, Amit Agrawal, Murlidhar Bajrangal Agrawal, Rakesh Rajendra Bojjadiya, Rakesh Rajendra Bojadia Hofer and Abhijit Pawar.

“It has been clarified here that funds deposited by entities in an interest-bearing escrow account will remain in the said account with a pledge in favor of SEBI until further orders,” the regulator said.

(The title and image for this report may have been reformulated only by the Business Standard staff; the rest of the content is automatically generated from a shared feed.)

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