Sebi fines two entities Rs 10 lakh in BGIL IPO case

Market regulator Sebi today imposed a penalty totaling Rs 10 lakh on Marwadi Shares and Finance and Chandarana Intermediaries Brokers in a case relating to alleged fraudulent trading activity in Bharatiya Global Infomedia's shares.
It also asked them to take steps to avoid self-trades in the capital market.
The alleged offence took place on the listing day of Bharatiya Global Infomedia (BGIL) on July 28, 2011.
A probe conducted by securities market regulator found that Marwadi had traded in the shares of BGIL on the first day of trade for its client, Chandarana, which resulted in creation of an artificial volume in the scrip of the company.

Furthermore, Chandarana had executed 24 self-trades on BSE and 169 self-trades on NSE through Marwadi and these orders were placed from the same terminal for a total of 22,652 shares on BSE and NSE, allegedly creating artificial volumes and misleading appearance of trading in the scrip of BGIL on the listing day, Sebi noted.
In addition, Sebi has asked Marwadi to review its own systems and take appropriate steps to avoid self-trades and other categories of trades which are prohibited under the regulatory norms.
The regulator has directed Chandarana to take steps to ensure its trades or trading strategy do not result in self-trades or other prohibited trades.