Mumbai: Shares of Ruchi Soya Industries Ltd on Wednesday hit at least a seven-year low after the capital markets regulator barred the company from the securities market.
The stock touched a low of Rs.17.75, a level last seen on 23 January 2009. It fell as much as 19.5% in intraday trading, its steepest drop since 16 August 2013. So far this year, the stock has declined 36%.
Securities Exchange Board of India (Sebi) on Tuesday barred Ruchi Soya Industries and National Steel and Agro Industries from the securities market for alleged fraudulent and manipulative trading in castor seeds at the NCDEX.
“I, prima facie, find that the acts and omissions of Ruchi Soya Industries Ltd and National Steel and Agro Industries Ltd has, not only disturbed market equilibrium, but also indicate manipulative and fraudulent design to form a cartel and corner the castor seed market,” Sebi whole time member Rajeev Kumar Agarwal said in the order.
Sebi said prima facie Ruchi Soya Industries and National Steel being part of ‘Ruchi group entities’ have violated the position limits prescribed by erstwhile Forward Markets Commission (FMC) in October and December 2014
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, it added.
