The market regulator's order came on plea by Umnag Nemani and Cheminare Trade Comm, where he is a director. Both are among the 19 entities barred by Sebi in August from the securities market, following an initial probe into the steep decline in share prices of some mid-cap stocks in July.
"...submissions of Nemani and Cheminare do not give any plausible reason/explanation, at this stage, for their trades in the respective scrips as alleged in the interim order.
"Thus, they have not been able to make out a prima facie case for revocation or modification of the interim order as against them and the material available on record justifies the continuation of the directions passed against them under the ad interim ex-parte order dated August 3, 2012," the Securities and Exchange Board of India said.
The market watchdog also noted that investigation in the matter is going on and an appropriate decision, in accordance with law, would be taken after completion of the probe.
Sebi is probing the sharp plunge of 20-26 per cent in the shares of mid-cap companies -- Parsvnath Developers, Pipavav Defence and Offshore Engineering, Tulip Telecom and Glodyne Technoserve -- at the BSE and NSE on July 26.
These stocks had seen sharp intra-day movements in both price as well as volume on that day, even though no major announcements or price sensitive information was disclosed to the exchanges by these companies in the previous 15 days.
Rejecting the plea, Sebi Whole Time Member Rajiv Kumar Agarwal said, "I am of the considered view that no intervention is called for, at this stage, in either vacating the interim directions or modifying it, with respect to Umang Nemani and Cheminare Trade Comm Pvt Ltd".
In an separate order, Sebi today revoked the ban on Yashika Holdings from securities market in related to plunge in some mid-cap stocks of -- -- Parsvnath Developers, Pipavav Defence and Offshore Engineering, Tulip Telecom and Glodyne Technoserve.
"...hereby revoke the directions issued against M/s Yashika holdings vide ad-interim ex-parte order dated August 03, 2012," Sebi said.
Sebi said that the facts and circumstances of the case relating to Yashika do not suggest any emergent or urgent reasons to continue with the directions issued against it.