Regulator Sebi today slapped a fine of nearly Rs 4.58 crore on seven entities for violating several capital market norms, including insider trading regulations.
In addition, some of these entities indulged in fraudulent trading of ICSA (India) Ltd shares and others submitted misleading information to the capital markets regulator.
The penalty has been levied on G Bala Reddy, G Velangini Mary, Mary Ashwini, Sravanthi Yakkanti, Sahasra Investments, BRG Energy and APRG, the Securities and Exchange Board of India (Sebi) said in an order.
According to Sebi, APRG had acted as a conduit for routing the funds arising out of the sale of ICSAI shares.
It transferred the funds to the promoters and promoter related entities.
Furthermore, Yakkanti, Ashwini and BRG were recipients of the funds arising out of the sale proceeds of the shares acquired through insider trading, which they either retained with themselves or further transferred to related entities.
Reddy, Ashwini and Yakkanti submitted misleading information to Sebi regarding their relationships with various entities, including the company.
Also, Reddy and Velangini Mary failed to make necessary disclosure regarding the pledged shares to the stock exchanges.
However, the regulator has disposed off the cases against seven other entities, saying the allegation of fraudulent trading could not be established against them.