Sebi disposes of case against three individuals

Sebi has disposed of a case against three individuals in a matter pertaining to violation of market regulator's norms on prohibition of fraudulent and unfair trade practices.
In three separate orders released today, the Securities and Exchange Board of India has disposed of the proceedings against Varshaben Navinbhai Soni, Ritesh Ashokkumar Shah and Naresh Madhoprasad Rungta.
Soni had allegedly indulged in self trades in the scrip of Aarey Drugs and Pharmaceuticals in 2009.
Similarly, Shah and Rungta had allegedly carried out self trades in shares of Winsome Textile Industries and Supertex Industries respectively.
According to the orders, "the alleged violation...Of Sebi (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 is difficult to establish" against the three entities and "accordingly the present adjudication proceedings is disposed of".

Sebi observed that self trade quantity by Soni amounted to 0.05 per cent of her total traded quantity in Aarey's shares.

"Such minuscule quantity will not lead to false and misleading appearance of trading in the scrip considering, the average trading volume in the scrip was 55,174 shares during the IP," Sebi said.
Similar observations were also made by the market regulator in the case of Shah and Rungta.
Separately, Sebi has imposed a penalty of Rs 5 lakh on SICOM for failing to disclose the acquisition of shares of Vas Infrastructure Ltd (VIL) in 2012, which amounted to more than 5 per cent stake in the company.

Sebi said it is imposing "a penalty of Rs 5 lakh on the noticee (SICOM)" for the non-compliance with the disclosure norms.
"Noticee was required to disclose the change in shareholding (change of more than 5 per cent), to the target company and to the stock exchange/s within two working days as its shareholding in VIL increased to 28.59 per cent," Sebi said.