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Sebi fines five individuals Rs 82 lakh for fraudulent trade

Press Trust of India  |  New Delhi 

Sebi has imposed a penalty of over Rs 82 lakh on 5 entities for indulging in price manipulation by contributing to positive last traded price (LTP) in the scrip of BGIL Film and Technologies.

In five separate orders, Sebi said the entities "created positive LTP of Rs 101.26 by trading among themselves," thereby violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.

A person or entity indulging in any act amounting to manipulation of price of security violates PFUTP regulations.

The regulator conducted an investigation from June 2008 to March 2009 on receiving information that scrip of BGIL went up to Rs 100 in short period of time on the company's merger announcements.

The probe found that the entities belonged to a group and were connected to each other, indulged in creation of misleading appearance of trading in the scrip which manipulated the price and volume of the share by contributing to significant amount of positive LTP, Sebi said.

By indulging in such activities, entities violated PFUTP norms and hence liable for monetary penalty, (Sebi) said in an order dated November 30.

Accordingly, Sebi imposed a fine of Rs 30 lakh on Tanuja Singh, Rs 20 lakh on Kartik Share Traders, and Rs 20 lakh on Rajiv Kumar Agarwal and Yogeshwari Gupta to be paid "jointly and severally". Besides, a penalty of Rs 10 lakh and Rs 2.5 lakh were imposed on Jitendra Kumar Bhatia and Krushna Kumar Brahmbhatt, respectively.

In two separate orders, Sebi imposed a total penalty of Rs 9 lakh on four individuals for indulging in fraudulent trade in the shares of by executing synchronised trades which resulted in artificial volume and led to false appearance of trading in the scrip.

While and were fined Rs 3 lakh each, Vimesh Doshi and Dhara Doshi were fined Rs 2 lakh and Rs 1 lakh, respectively.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 03 2018. 17:10 IST