You are here: Home » PTI Stories » National » News
Business Standard

Sebi imposes Rs 77 lakh fine on Mridul Securities for fraudulent trade

Press Trust of India  |  New Delhi 

Markets regulator Sebi Thursday slapped a fine of Rs 77 lakh on Mridul Securities for indulging in fraudulent trade practices in the scrips of Pressman Advertising.

The regulator conducted an investigation from April to August 2013 regarding trading in shares of the company.

Sebi observed that the firm was part of a group of 29 entities that engaged in reversal trades through a combination of on-market and off-market transactions that led to artificial volume, thereby creating a false and misleading appearance of trading in the scrips.

However, Sebi added that out of the total 29 entities, adjudication proceedings have been disposed of under the settlement provision in respect of 15 entities.

On Wednesday, the regulator fined five entities a total of Rs 40 lakh in the same matter.

"Noticee along with the group entities indulged in reversal of trades..., thereby created artificial volumes and misleading appearance of trading, and entered into transactions without any intention of change of beneficial ownership of such security," Sebi noted in an order.

By doing so, the firm violated provisions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.

Accordingly, the Securities and Exchange Board of India (Sebi) fined Mridul Securities Pvt Ltd Rs 77 lakh.

In a separate order on Wednesday, Sebi imposed a penalty of Rs 10 lakh on Finelink Suppliers Pvt Ltd, presently known as Stream Suppliers, for executing fraudulent trades which led to creation of artificial volume in the illiquid stock option segment on the BSE.

In April, the regulator had announced taking action in a phased manner against 14,720 entities for fraudulent trade in the illiquid stock option segment and has passed several orders in the past few weeks against such entities.

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

First Published: Thu, December 27 2018. 18:00 IST
RECOMMENDED FOR YOU