Cracking its whip on entities using stock markets for evading taxes and laundering black money, watchdog Sebi has decided to suspend trading in listed companies that are found to be used by such manipulators.
The capital markets regulator has identified three parameters for taking action against such companies and the trading would be suspended in the shares of those entities that satisfies more than one of the criteria.
“These parameters include these companies being non- existent on their mentioned address, misuse of preferential allotment and weak fundamentals not supporting price rise,” a senior official said.
