Sebi during the probe had also received a letter from the income tax department stating that certain entities had generated a bogus long-term capital gain, through stock exchange mechanism, in various scrip including the scrip of Kailash Auto Finance.
During the examination, the regulator found that the seven entities were connected to each other and executed sell trades in a fraudulent manner to create a misleading appearance of trading in the scrip at higher prices and thereby manipulating the share's price.
The act of manipulating the price of scrip violates PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, the Securities and Exchange Board of India (Sebi) said.
Accordingly, Sebi banned Eversafe Promoters, Bholebaba Suppliers, Subhankar Exim, Sarvottam Advisory, Overall Vincom, Akriti Advisory Services (now known as Jagruti Infra Developers) and Supernova Advertising for a period of four years.
The four-year ban would include the debarment period of two and half years already served by Bholebaba Suppliers and Overall Vincom, Sebi noted.
(With inputs from agencies.)