GDR manipulation: Sebi bars Syncom Healthcare, 6 individuals from markets for five years

Markets regulator Sebi has barred Syncom Healthcare, its six former board members for five years from capital markets in a matter related to manipulation of a global depository receipts (GDR).

The regulator after conducting a probe found that the firm issued 4.5 million GDRs worth USD 20.74 million on September 3, 2010, on the Luxembourg Stock Exchange.

Vintage FZE, a Dubai-based firm, now known as Alta Vista International FZE, was the only subscriber to the GDR and the subscription amount was paid by obtaining loan from European American Investment Bank (EURAM).

However, the loan paid by Vintage was secured by pledge agreement between Syncom and EURAM Bank, the regulator said.

The fraudulent arrangement of loan and pledge agreement, which resulted in facilitating the subscription of GDR issue of the company by only one subscriber, was not disclosed to the exchange by the company, the regulator said in an order dated January 15.

Moreover, the firm mislead the investors into believing .