Capital markets regulator SEBI has barred Greencrest Financial Services Limited, two of its executive directors, and 15 others from capital markets for three years for fraudulent trading.The existing holding of securities such as mutual funds will remain under the freeze.

Greencrest Financial Services Ltd officials  restrained from capital market.SEBI investigated in trading of scrip of Greencrest Financial Services Limited from March 2012 to July 2015.

The trading pattern adopted by the entities together clearly demonstrates their ill-intentioned design.They  inflated the price of the scrip through artificial and manipulative trades, SEBI said.

It was further revealed that the buyer entities kept placing orders in larger quantities in the early hours of share market and the seller entities matched the price offered by buyer entitled around the closing of the market but released their shares in smaller quantities for executing their trades thereby extending an active helping hand to the buyers to contribute to the last trading price (LTP) of the price of the scrip with each of their trades.

As no volume in the scrip buyer orders placed.  There was no noteworthy positive information available in the public domain in favour of the financial affairs of the company. That could have inspired them to buy the shares of the company quantities at any cost.

In fact, the buyer entities had received funds from entities connected to the company.

Sunil Parakh and Aditya Parakh appointed as executive directors of Greencrest Financial Services  Limited. Therefore, were undoubtedly at the helm of the affairs of the company during the relevant period.

Final Words

The company being a legal entity cannot function on its own. It can act only as a result of the control exercised over it by the directors appointed on its board.

Both of them, being directors of the company, did not make any submission.They did not  demonstrate to the contrary or to suggest that the acts attributed to the company were without their involvement, consent or indulgence.

Also, they were part of the pre-meditated scheme or artifice. The company’s affairs managed by them at the relevant point in time.