Market regulator Sebi on Tuesday imposed a penalty of Rs 15 lakh on MBL & Company Ltd for indulging in fraudulent trading in the scrip of Gujarat NRE Coke and violating stock broker norms.
The regulator conducted an investigation between December 2011 and October 2014 and found that MBL was indulged in self trades.
"The trading pattern adopted by MBL is of a manipulative and unfair nature with the intention to inflate the scrip price, which had mislead the investor in taking an informed decision while dealing in the scrip of Gujarat NRE Coke," Sebi said.
By doing so, the noticee has violated the PFUTP (Fraudulent and Unfair Trade Practices) Regulations.
Sebi also said that MBL in its capacity of a stock broker failed to exercise necessary skill, care and due diligence while trading in the scrip of Gujarat Coke, and hence violated stock broker norms.
Accordingly, the Securities and Exchange Board of India (Sebi) has levied the fine of Rs 15 lakh on the broker.
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