You are here: Home » Markets » News
Business Standard

Sebi imposes Rs 45 lakh fine on 9 individuals for fraudulent trading

he regulator has imposed a fine of Rs 5 lakh each on 8 individuals and one entity, collectively referred to as noticees

Sebi | stock market trading

Press Trust of India  |  New Delhi 


regulator on Friday imposed a fine of Rs 45 lakh on 9 individuals for indulging in fraudulent trading activities in the shares of Maa Jagdambe Tradelinks Ltd.

The regulator has imposed a fine of Rs 5 lakh each on 8 individuals and one entity, collectively referred to as noticees.

had investigated allegations of the generation of bogus Long Term Capital Gains (LTCG) in the scrip of Maa Jagdambe Tradelinks Ltd (MJTL) from May 2013 to July 2015 period.

During the probe, it was found that the noticees predominantly traded in the scrip of MJTL as sellers and on many trading days one of them was found to be the only seller chasing the pending buy order of the shares of MJTL.

Besides, they repeatedly placed sell orders for small quantities across different days at prices higher than the last traded price when buy orders for large quantities were pending in the scrip.

The noticees, while trading in the shares of MJTL individually or collectively, contributed to the positive LTP (last trading price) of the scrip of MJTL by resorting to manipulative and fraudulent trades, said in an order on Friday.

By doing so, they have violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules.

"Having established that the noticees had contributed in creation of new positive LTP, such trades are certainly in the nature of causing adverse impact in disturbing the equilibrium of fair market mechanism," Sebi said while imposing the fine.

The regulator, through three separate orders, levied a fine of Rs 2 lakh each on Dheerendra Krishan Pratap and Pushpanjali Singh Baghel, and Rs 3 lakh on Pushpendra Singh Baghel for their failure to comply with the summons issued by Sebi in the matter of Sai Prakash Properties Development Ltd.

(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.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, November 06 2020. 23:14 IST