SEBI Relaxes Restrictions on More Than 200 Entities

SEBI Relaxes Restrictions on More Than 200 Entities

SEBI has eased restrictions on more than 200 entities against whom the regulator has taken action in different cases of alleged misuse of stock market platform for tax evasion and suspected money-laundering activities.

The entities, which were barred from the securities market in three different cases, have now been allowed certain relaxations, including permission, to deal in government securities and invest in ETF (exchange-traded funds).

Besides, they can enter into delivery-based transactions in cash segment in NSE Nifty 500 index as well as S&P BSE 500 shares and subscribe to mutual funds.

Among others, these entities can tender shares lying in their demat account in any open offer/delisting offer under the relevant Sebi regulations.

In the matter related to Pine Animation, Sebi had barred the company and 177 related entities in May 2015. The action was initiated for alleged tax evasion worth Rs 420 crore.

Out of the 178 entities, 122 of them, including Pine Animation, have been given relaxations.

With regard to the case involving Moryo Industries, the watchdog has eased curbs on nearly 71 entities. Through an interim order passed in December 2014, Sebi had barred Moryo Industries and 90 other connected entities, including its promoters and directors, from the securities market till further directions.

Sebi has also lifted certain restrictions on more than 50 entities in a case related to allegedly generating fictitious profits and losses for tax evasion.

On this matter, the regulator barred 59 entities by way of an interim order in August last year.

“I deem it appropriate to make further relaxations so as to address the issues of the personal and business exigencies or other liquidity problems,” Sebi Whole-time Member Rajeev Kumar Agarwal said in three separate but similarly-worded orders passed on August 22.

As per the latest orders, the entities for whom relaxations have been extended can sell the securities lying in their demat accounts as on the date of interim orders. This will exclude shares of the companies which are suspended from trading by stock exchanges concerned.

Besides, sale proceeds lying in the escrow account can be used for certain purposes.

Sebi said “up to 25 per cent of the value of the portfolio as on the date of the interim order or the amount in excess of the profit made/loss incurred or value of shares purchased to give exit, whichever is higher, may be utilised for business purposes and/or for meeting any other exigencies or addressing liquidity problems etc”.