"They (12 entities) matched the price of prevailing buy orders which were placed at a higher price than the last traded price and thus contributed to increased scrip price with each of their trades, and thereby misled the investors," Sebi said while imposing ban on them.
The Securities and Exchange Board of India (Sebi) conducted an examination from December 2013 to December 2014 regarding the trading in the scrip of Ram Minerals and observed that the price rose from Rs 2.20 per share to Rs 219.55 during the investigation period.
The probe revealed that entities were connected to each other and were acting in concert to manipulate the price of the scrip. Despite sufficient buy orders being available in the market, the entity released very small quantity of shares in each transaction and performed not more than one transaction a day.
The intention of the entities was to mark the share price higher and not merely to enter into the sale transactions, Sebi noted.