Sebi imposes Rs 15 lakh fine on 3 entities in Magma Fin case

Market regulator Sebi today slapped a fine of Rs 15 lakh on three entities for their alleged role in fraudulent trading in the shares of Magma Fincorp Ltd and for violating stock broker norms.
The Securities and Exchange Board of India, (Sebi), in an order, imposed a "penalty of Rs five lakh each on Sundeep Credits Pvt Ltd and Nilkanth Dealers Pvt Ltd...A penalty of 5 lakh on Indo Thai Securities Ltd."
According to Sebi, Sundeep Credits and Nilkanth Dealers had entered into self trades which created artificial volume in Magma Fincorp share, leading to false and misleading appearance of trading in the scrip. Thus violating Sebi's PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.

On all the occasions where self trades were executed, Indo Thai Securities Ltd was the broker on both buy side and sell side, it added.
Sebi said that Indo Thai Securities Ltd as their broker, has executed the self trades on behalf of Sundeep Credits and Nilkanth Dealers and has thus, failed to carry out its business with due skill,care and diligence in violation of the broker regulations.
However, Sebi has dismissed these charges against Sunil Kumar Manohar Lal Jain, Sadhna Doshi and Ritu Doshi.