Markets regulator Sebi on Friday imposed a total fine of Rs 33 lakh on six individuals and two entities for indulging in fraudulent trading in STL Global Ltd's shares.
They violated Prohibition of Fraudulent and Unfair Trade Practices norms.
Sebi found that the entities traded among themselves through off market and on-market transactions in a way that the ownership of the shares circulated between them, while at the same time giving the appearance of high trading volumes in the scrip.
"Synchronized trades of 50.34 per cent (on BSE) and 7.65 per cent (on NSE) by the Noticees indicate that they had no intention to trade except to create artificial volume in the scrip to mislead the investors," Sebi noted.
Besides, the transactions were non-genuine as no consideration amount was paid by three entities for the transfer of shares, in violation of Securities Contracts (Regulation) Act.
Therefore, Sebi has levied a fine of Rs 30 lakh on eight entities which is to be paid jointly and severally.
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The entities are Manoj Jain HUF, Manoj Kantilal Jain, Sanjay Kalwadia HUF, Shreeji Investment (Ritesh Vyas), Vijay Kumar Tayde, Abhishek Upadhyay, Sandhya Dharkar and Nitin Sen.
Also, Manoj Jain HUF, Manoj Kantilal Jain, Sanjay Kalwadia HUF are facing a fine of Rs 1 lakh each.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
