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Sebi penalises four individuals for manipulating Viaan Industries' stocks

Bollywood actress Shilpa Shetty Kundra and her husband Raj Kundra are the promoters of Viaan Industries Limited (VIL)

SEBI | Securities and Exchange Board of India | Shilpa Shetty

Press Trust of India  |  New Delhi 

Photo: Shutterstock

Capital regulator on Thursday slapped a fine totalling Rs 5 lakh on four individuals for indulging in manipulation of the share price of Viaan Industries Limited.

Bollywood actress Kundra and his husband are the promoters of Viaan Industries Limited (VIL).

In its order, the (Sebi) imposed a total penalty of Rs 5 lakh on the noticees -- Heena Mukesh Tolia, Bharati Vilesh Dalal, Manoj Mangesh Powar and Jatin Chandra Barua -- which needs to be paid jointly and severally by them.

The regulator found that these individuals were acting in concert under a scheme, and were instrumental in artificially inflating and manipulating the price of the scrip of Viaan Industries (formerly known as Hindustan Safety Glass Industries Limited) during the investigation period of September, 2013 to December, 2015.

noted that Tolia and Dalal repeatedly placed buy orders in the scrip of VIL at higher price than the prevailing price in the illiquid scrip of VIL and the sell clients -- Powar and Barua -- repeatedly placed the sell orders for miniscule quantity even though higher buy quantity orders were available.

Also, Powar and Barua were not acting as genuine sellers and had no bona fide intention to sell shares, yet, they were major counterparty sellers of the two buyers -- Tolia and Dalal -- whose trades were instrumental in contributing to a significant increase in the LTP of the scrip of VIL.

"Therefore, it can be concluded that the Noticees had manipulated the price of the scrip of VIL and created a misleading appearance of trading in the scrip," said.

Through such acts, they violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade practices) norms, it added.

(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.)

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First Published: Thu, April 28 2022. 21:16 IST