Mumbai: India’s capital market regulator Securities and Exchange Board of India (Sebi) on Friday banned Jaybharat Textiles and Real Estate Ltd (JTREL), a company promoted by the Tayal group, from accessing the securities market for violating Sebi norms.
According to the order, certain entities related to the promoters of JTREL artificially inflated the firm’s share prices. Sebi found that the share price of JTREL rose 117% between September 2007 and December 2009.
The Tayal group is also a majority stakeholder in Bank of Rajasthan Ltd. Earlier this week, Sebi banned 100 entities related to the promoters of the bank from dealing in the securities market. These entities also allegedly violated a number of Sebi rules. The regulator had also found that Tayal and his associates actually own 55.01% of the bank and not 28.60% as had been claimed by the Tayal group.
Also, Fitch Ratings placed all national ratings of India’s Krishna Knitwear Technology Ltd, Eskay Knit India Ltd, Actif Corporation Ltd and Global Softech Ltd, promoted by the Tayal family, on Rating Watch Negative following an 8 March interim order from Sebi restraining them and various group entities from accessing the capital markets or from dealing in securities.