Heena Developers is the promoter while the seven others are Bibhas Bhubaneswar Jha (HUF), Mahender Singh, Sham Sunder Gupta, Shark Communications, Veena Gupta, DMC International and Ours Trading and Holdings.
The Securities and Exchange Board of India (Sebi) had conducted an investigation into the alleged irregularities in the share trading of IFL Promoters for the possible violation of the Securities Contracts (Regulation) Act (SCRA) during the period from January 4 to September 30, 2010.
The regulator had observed that Heena Developers had transferred 4,58,190 shares of IFL Promoters to seven other entities in off market transactions.
Heena Developers had received only Rs 78,000 as against total consideration of Rs 67,43,501 from the transferees, which is not in conformity with SCRA.
According to the SCRA, in a 'spot delivery contract' the payment of consideration amount must be done either on the same day or the next day of the transaction.
The entities have contravened the provisions of the SCRA, Sebi said in a order.
SCRA also makes a transaction in securities illegal which is other than between the members of recognised stock exchange.
As per the regulator, the transactions entered by the eight entities were neither "executed on the stock exchange nor do they qualify to be the spot delivery contract, therefore, need to be penalised accordingly".