Sebi slaps fine on 4 entities for fraud trade

Markets regulator Sebi has imposed a total penalty of Rs 2 lakh on four entities for indulging in fraudulent trading in the shares of Blue Circle Services.
The regulator has slapped a fine of Rs 50,000 each on Jayesh Narendra Kesharia, Prakash Todankar, Sanyukta Rungta and Rajat Share Broking Pvt Ltd.
According to Sebi, these entities had entered into transactions at higher prices than the last traded price (LTP) with low volumes in a fraudulent and manipulative manner in the scrip of Blue Circle Services.
"It is normal in the securities market to sell the scrip when a higher price is offered. But by purchasing shares at higher price than the LTP in all of their trades, the noticees had generated the wrong impression about the liquidity of the scrip in the market," Sebi said in an order passed dated June 9.

The regulator said, "the trades done by the noticees (four entities) are in violation of ... Of PFUTP (Prohibition of Fraudulent Trading Practices) Regulations".
Accordingly, Securities and Exchange Board of India (Sebi) has imposed the penalty.