Ban on 17 entities to stay in castor seed case; 1 revoked: SEBI

TIL Desk Business/New Delhi/ Sebi today lifted trading ban on one broker but decided to continue with debarment of 17 other entities in the case related to manipulation in castor seeds trading. The latest order comes nearly a year after the regulator began to crack down on alleged irregularities in the commodity derivatives market.

Through two interim orders, passed in March and May last year, respectively, Sebi had barred a total of 18 entities from the securities markets for alleged fraudulent and manipulative trading in castor seeds at the NCDEX.

Providing a partial relief to 17 entities that would continue to face the ban, they have been allowed to trade in commodity derivatives markets for hedging their physical market positions under the supervision of the exchanges.

“Trading pattern of Korodimal suggests that he is a small trader and in the present matter long position of 50 tons held by him in castor seed contracts is insignificant compared to the total position held collectively by the other entities as brought out in the interim orders,” Sebi said.