Sebi imposes Rs 45 lakh fine on 9 individuals for fraudulent trading

Markets regulator Sebi on Friday imposed a fine of Rs 45 lakh on 9 individuals for indulging in fraudulent trading activities in the shares of Maa Jagdambe Tradelinks Ltd.

The regulator has imposed a fine of Rs 5 lakh each on 8 individuals and one entity, collectively referred to as noticees.

Sebi had investigated allegations of the generation of bogus Long Term Capital Gains (LTCG) in the scrip of Maa Jagdambe Tradelinks Ltd (MJTL) from May 2013 to July 2015 period.

During the probe, it was found that the noticees predominantly traded in the scrip of MJTL as sellers and on many trading days one of them was found to be the only seller chasing the pending buy order of the shares of MJTL.

Besides, they repeatedly placed sell orders for small quantities across different days at prices higher than the last traded price when buy orders for large quantities were pending in the scrip.

The noticees, while trading in the shares of MJTL individually or collectively, contributed to the positive LTP (last trading price) of the scrip of MJTL by resorting to manipulative and fraudulent trades, Sebi said in an order on Friday.

By doing so, they have violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules.

"Having established that the noticees had contributed in creation of new positive LTP, such trades are certainly in the nature of causing adverse impact in disturbing the equilibrium of fair market mechanism," Sebi said while imposing the fine.

The regulator, through three separate orders, levied a fine of Rs 2 lakh each on Dheerendra Krishan Pratap and Pushpanjali Singh Baghel, and Rs 3 lakh on Pushpendra Singh Baghel for their failure to comply with the summons issued by Sebi in the matter of Sai Prakash Properties Development Ltd.