You are here: Home » Markets » News
Business Standard

Sebi receives Rs 1.5 cr from 6 entities for settling fraudulent share case

The entities are Prakash Kumar Mohta, Prakash Kumar Mohta (HUF), Jayantika Jatia, Maitreyi Kandoi, Moulishree Gani and Pratibha Khaitan

Topics
Sebi

Agencies  |  New Delhi 

Sebi
They were alleged to have violated the Delisting of Equity Shares Regulations and the Prohibition of Fraudulent and Unfair Trade Practices norms

Six entities have settled with the market regulator Securities and Exchange Board of India (Sebi), cases of alleged fraudulent trading in ECE Industries’s shares, by paying over Rs 1.5 crore towards settlement charges.

The entities are Prakash Kumar Mohta, Prakash Kumar Mohta (HUF), Jayantika Jatia, Maitreyi Kandoi, Moulishree Gani and Pratibha Khaitan.

They were alleged to have violated the Delisting of Equity Shares Regulations and the Prohibition of Fraudulent and Unfair Trade Practices norms, noted in separate settlement orders.

ALSO READ: Decline in debt, jump in stock: UPL gives investors a pleasant surprise

noted that ECE Industries came out with buyback and delisting offers for its shares during 2016. It was observed that these entities connected to the promoters of ECE funded the purchase of shares of the firm, a bulk of which was subsequently sold under the buyback offer of ECE and thus contributed towards making the buyback offer successful.

noted that Prakash Kumar Mohta was a promoter and director of ECE and Jayantika Jatia, also a promoter of ECE, was the director of Universal Prime Aluminium.

ALSO READ: PMS debt assets double since FY15; investors seek reassurance on holdings

It was alleged that one entity funded by Universal Prime Aluminium and another entity funded by companies related to Mohta for purchase of ECE's shares had contributed to scrip price fall by manipulative trades and placed bid under the delisting process at a price lower than prevailing market price.

However, pending the proceedings, the entities filed separate settlement applications with the regulator proposing to settle the cases without admitting or denying the guilt. High-powered advisory committee of Sebi considered the settlement terms proposed by the applicants and recommended the case for settlement upon payment of Rs 25.5 lakh each.

First Published: Sat, May 02 2020. 01:30 IST
RECOMMENDED FOR YOU