Market Regulator SEBI has barred two directors of Gromo Trade and Consultancy, along with 18 other entities from securities markets for a period of five years. SEBI reportedly found them guilty for fraudulent trading in the shares of the company.

SEBI conducted a probe into the trading activities of certain entities in the scrip of Gromo (formerly known as Kamalakshi Finance Corporation Ltd) during January-February, 2015.

Following the probe, SEBI found that Gromo, its two non-independent directors had acted with Kamalakshi group along with other entities in manipulative manner to increase the price of the scrip by repeatedly placing buy orders at negligible quantities at prices higher than Last Traded Price.

SEBI said in a statement that all the entities have intentionally increased the price of the scrip which amount to an act to market manipulation thereby violating PFUTP (Prohibition of Fraudulent and Unfair trade Practices) regulations.

Thus the Securities and Exchange Board of India has barred Gromo, its directors — Dheeraj Shah and Sheetal Dheeraj Shah along with 18 other entities for five years from securities markets.

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