BSE SME closes in red again; Investors' confidence takes a beating: Expert on Money Laundering
Updated: Jun 30, 2015 04:50:14pm
Mumbai, June 30 (KNN) The BSE SME exchange continued to trade in red today, a day after market watchdog SEBI barred 239 individuals and entities from accessing the securities market for misusing the small and medium enterprises(SME) trading platform of exchanges to launder money and to evade taxes.
The experts are of the view that such instances have an adverse impact on the investors’ confidence and take a toll on the image of the entire sector.
“Although only 94 companies are listed and only some of the companies may be under SEBI scanner, still it may have a lasting negative impression on the entire SMEs and particularly the genuine MSMEs willing to list on the SME stock exchange. Investor confidence, especially of the retail investors, takes a beating,” Rajesh Dubey, Partner at SME BOTS LLP.
Today, out of 88 companies listed, only 35 companies traded actively today. There were 22 declines, 7 advances, whereas 6 companies traded flat. The market capitalization of BSE SME reached Rs 7,614.67crore. It closed at 906.56, down by 6.10 points.
Meanwhile, Sebi's investigations have revealed certain entities manipulated the share price of their companies to launder money. The regulator has barred a total of 239 persons / entities, including the four companies, from accessing the market.
The four companies are - Eco Friendly Food Processing Park Limited; Esteem Bio Organic Food Processing Limited; Channel Nine Entertainment Limited; and HPC Biosciences Limited.
The first three are involved in agricultural businesses, while the fourth is a production and distribution company for serials, films and events. The companies were listed on the BSE between January and March 2013. (KNN Bureau)
The experts are of the view that such instances have an adverse impact on the investors’ confidence and take a toll on the image of the entire sector.
“Although only 94 companies are listed and only some of the companies may be under SEBI scanner, still it may have a lasting negative impression on the entire SMEs and particularly the genuine MSMEs willing to list on the SME stock exchange. Investor confidence, especially of the retail investors, takes a beating,” Rajesh Dubey, Partner at SME BOTS LLP.
Today, out of 88 companies listed, only 35 companies traded actively today. There were 22 declines, 7 advances, whereas 6 companies traded flat. The market capitalization of BSE SME reached Rs 7,614.67crore. It closed at 906.56, down by 6.10 points.
Meanwhile, Sebi's investigations have revealed certain entities manipulated the share price of their companies to launder money. The regulator has barred a total of 239 persons / entities, including the four companies, from accessing the market.
The four companies are - Eco Friendly Food Processing Park Limited; Esteem Bio Organic Food Processing Limited; Channel Nine Entertainment Limited; and HPC Biosciences Limited.
The first three are involved in agricultural businesses, while the fourth is a production and distribution company for serials, films and events. The companies were listed on the BSE between January and March 2013. (KNN Bureau)
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