Ruchi Soya shares slide 15% on Sebi ban
Ruchi Soya has been barred from the securities market for alleged fraudulend activities in the trading of castor seeds.
Shares of Ruchi Soya Industries tumbled 15% in early trade after Sebi barred the company from the securities market for alleged fraudulent activities in trading of castor seeds.
The scrip, which opened at Rs 20, plunged nearly 15% to Rs 18.80 on the BSE. It had closed at Rs 22.05 on Tuesday.
On the NSE too, the company's shares fell 15% to Rs 18.80 and had touched a low of Rs 17.80. It opened at Rs 19.95 after closing at Rs 22.10 on Tuesday.
The Securities Exchange and Board of India (Sebi) has banned Ruchi Soya Industries and National Steel and Agro Industries from the securities market for alleged fraudulentand manipulative in trading in castor seeds at the NCDEX.
Shares of National Steel slumped 5% to Rs 11.26 on the BSE. Similar trends were seen on the NSE as the scrip dropped to Rs 11.25 in early morning trade.
The two companies have been barred from "buying, selling or dealing in the securities market, either directly or indirectly, in any manner whatsoever, till further directions", Sebi said on Tuesday.
In his order, Sebi Whole Time Member Rajeev Kumar Agarwal said that prima facie the acts and omissions of Ruchi Soya Industries and National Steel and Agro Industries have notonly disturbed market equilibrium but also indicate manipulative and fraudulent design to form a cartel and corner the castor seed market.
Meanwhile, 30-share Sensex gained over 371 points to touch 25,677.32 points in the morning trade.