Sebi slaps Rs 4.8 mn fine on 8 entities for flouting regulatory norms

Capital markets regulator Sebi on Thursday slapped a fine of Rs 48 lakh on eight entities, including promoters of United Polyfab Gujarat Ltd (UPGL), for manipulating the share prices of the company.

These entities have to pay the penalty jointly and severally within 45 days, as per an order.

The order came after Sebi conducted an investigation of UPGL and trading by certain entities in the scrip of the company, to ascertain whether there was any violation of the provisions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules.

Based on the findings of the probe in the matter of trading by certain entities in the scrip of UPGL, the regulator initiated adjudication proceedings against these entities.

Thereafter, the regulator issued a common show cause notice to the noticees on July 18, 2023.

"...UPGL and Gagan Nirmalkumar Mittal in collusion with other Noticees i.e. Shiv Marketing and Trading, Vishwakarma Trading House, Anilkumar Mangalchand Mittal, Amay Spincot Pvt Ltd, Aditi Anil Mittal and Dhaval Anil Kumar Mittal were engaged in a fraudulent scheme to increase the share price and market capitalisation of UPGL to migrate UPGL from NSE's SME Platform 'Emerge' to the Main Board of the Exchange.

"I hold that the allegations that UPGL and Gagan Nirmalkumar Mittal along with other the noticees have violated the provisions of PFUTP stand established," Sebi's Adjudicating Officer Shashi Kumar Valsakumar said in the order.

By indulging in these activities, the market regulator has imposed a fine on the entities.