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Sebi slaps Rs 1.30 cr fine on JLG Securities, 7 others for fraudulent trading

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Press Trust of India New Delhi
Markets regulator Sebi on Wednesday imposed a fine of Rs 1.30 crore on JLG Securities and seven individuals for fraudulent trading in the scrip of Regency Hospital.
The regulator conducted a probe in the trading of shares of Regency Hospital between April 2011 and September 2011 after it observed that "prima facie there appeared to be creation of artificial volume in the scrip of the company and influence on price in the scrip of the company."

During the probe, Sebi found that the entities executed synchronised trades, reversal trades and self-trades among themselves resulting in artificial volumes.
"The noticees have also executed reversal trades resulting in no change of beneficial ownership and thus, created artificial volume in the scrip and gave false and misleading appearance of trading in the scrip and thus, the self-trades are seen in the context of the role played by the noticees...are being considered as manipulative with perverse intention," Sebi said.
The trades of the entities were found to be in violation of Prohibition of Fraudulent and Unfair Trade Practices norms.
Consequently, Sebi imposed a fine of Rs 25 lakh on JLG Securities Pvt Ltd and a fine of Rs 15 lakh each on Shree Gopal Gupta, Ashok Kumar Nigam, Hari Om Mishra, Ajay Srivastava, Paramjeet Arora, Parul Kansal, K P Abraham.
In separate orders, Sebi imposed a total fine of Rs 38.2 lakh on five entities for indulging in fraudulent trade in illiquid stock options segment on the BSE.
Seema Holdings Pvt Ltd, Rockland Media and Communication, Shree Ganesh Metaliks Ltd, NCL Research and Financial Services Ltd and Mi Stock Broking Pvt Ltd are the five entities facing fines.
"The trades executed by the noticee were not genuine trades and being non-genuine, created an appearance of artificial trading volumes in respective contracts," Sebi said in similarly worded separate orders.

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First Published: Jul 31 2019 | 6:20 PM IST

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