SEBI Bars V Marc India And 11 Other Entities From Market Over Stock Manipulations

SEBI's investigation, spanning from April 9 to April 30, 2021, was supported by data retrieved from Kurani's mobile device, confiscated during a regulatory "search and seizure operation"

SEBI has prohibited 12 entities "from buying, selling or dealing in the securities market or associating themselves with the securities market, either directly or indirectly, in any manner whatsoever until further orders"

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The Securities and Exchange Board of India (SEBI) on Thursday prohibited 12 entities, including the promoter of V Marc India Ltd, from participating in the securities market due to their involvement in a deceptive scheme aimed at manipulating volumes and prices of the company's shares. In Addition, the regulator confiscated wrongful gains totalling Rs 6.38 crore obtained by certain entities through the manipulative scheme, according to the statement in an interim order. This case primarily revolves around fraudulent and manipulative trading activities concerning the shares of V Marc India Ltd, which is listed on NSE’s SME segment and appears to have been orchestrated by the promoter, company management, and associated parties.

In its ruling, SEBI found prima facie evidence suggesting that V Marc's promoter and MD, Vikas Garg, along with Sandeep Kumar Srivastava, former Whole Time Director of the company, enlisted the services of Prijesh Kurani to 'operate the market'. The order further highlighted that Kurani, in addition to utilising his own and affiliated entities’ trading accounts, employed accounts linked to Garg to manipulate the stock. 

Moreover, Garg and the company management allegedly funnelled funds through their affiliated entities to Kurani to execute the fraudulent scheme. The purported fraudulent activities commenced shortly after the scrip was listed on April 8, 2021.

"The impact of this alleged fraudulent scheme is evident in the manner volumes surged and prices increased after which most of the entities -- PV Manipulators-- as well as the IPO subscribers - exited fully. The shares offloaded were purchased by public shareholders, leading to the increase in their numbers as well," said SEBI.

As a result, SEBI has prohibited 12 entities "from buying, selling or dealing in the securities market or associating themselves with the securities market, either directly or indirectly, in any manner whatsoever until further orders.”

Besides Garg, Srivastava, and Kurani, SEBI has barred the following entities: Sudhir Gupta, Dharini Kurani, Rekha Kurani, Surbhi Aggarwal, Vinod Vilas Sable, Seema Garg, Madhu Srivastava, Jai Kishorr Singhal, and Seema Agarwal.

SEBI's investigation, spanning from April 9 to April 30, 2021, was supported by data retrieved from Kurani's mobile device, confiscated during a regulatory "search and seizure operation" conducted at his residence in May 2022. This operation was part of an investigation into the "Front Running of Trades of Axis Mutual Fund" matter.

The data retrieved from Kurani's device, particularly WhatsApp messages involving entities mentioned in this order, along with a signed agreement between certain entities, has served as crucial evidence in this case.