Sebi on Thursday barred BP Fintrade Pvt Ltd and BP Comtrade from capital markets for a period of four weeks for manipulative trade in the scrip of Blue Blends (India) Limited.

It further said that the two entities will at all times exercise due care and caution while trading in the market and adopting strategies that may have an impact on the fair price discovery of the scrips.

Sebi conducted an investigation between September 2015 and April 2016 into the scrips of Blue Blends to determine whether the moment in the price of the scrips was on account of normal trade or due to any act of price manipulation.

According to Sebi, BP Fintrade and BP Comtrade are connected to each other and the trade executed by these entities in the scrip of Blue Blends contributed to negative LTP(Last trade price).

The traders were executed with the intention of manipulating the price of the scrips and such trades were not a significant proportion of the total trades executed by the entities, Sebi said in an order.

"Given the repeated nature of the trade for minuscule quantities that were below the LTP for which no justifiable reason has been provided by the notices, I am compelled to conclude that such trades were executed with an intension to manipulate the price of the scrips, Sebi member G Mahalingam said.

The trades of these entities especially the trade for minuscule quantities below LTP violated PFUTP( Prohibition of Fraudulent and Unfair Trade Practices) Regulations.

According to, the regulator has restrained the entities from "buying, selling or otherwise dealing in the securities including units of mutual funds, either directly or indirectly or in any other manner whatsoever, for a period of four weeks".

"In the view of COVID-19 related lockdown, I direct that this order shall come into force from the date of reopening of the Securities Appellate Tribunal," Sebi said.