Sebi orders impounding of Rs 5-crore worth unlawful gains from 8 entities

Markets regulator Securities and Exchange Board of India (Sebi) has ordered impounding of unlawful gains worth more than Rs 5 crore from eight entities after finding them guilty of indulging in synchronised trading in the shares of Polar Pharma India.

The eight entities include DPK Stock & Securities, Shivam Investments, Caps Finstock Services, Peeyush Agarwal, AJC Securities & Fin, Supreme Lease Finvest, Shailja Investments and Kanhai Commodity Intermediaries.

An investigation conducted by Sebi in the share price of Polar Pharma during July-September 2005, found that the entities had indulged in manipulative and unfair trading practices and allegedly made profits.

 

According to the investigation, the entities were involved in the creation of artificial volume by indulging in synchronised trading for more than one day.

Synchronised trading refers to a practice where the seller and buyer may have an understanding between them on trading of specific shares.

"It is noted that the suspected entities had traded substantially amongst themselves, created artificial volume in the market and also contributed to the positive last trading price (LTP) and manipulated the price and volume in the scrip of PPL", Sebi said.

"...It is observed that the combined unlawful gains made by the suspected entities from such trading was about
Rs 2,22,82,044", it added.

Accordingly, the regulator ordered to impound the alleged unlawful gains of a sum of Rs 5,03,57,419 (including interest) from August 1, 2005 to January 31, 2015.

"If the funds are found to be insufficient to meet the figure of unlawful gains, then the securities lying in the demat account of these persons shall be frozen to the extent of the remaining value," Sebi said.