Market watchdog Sebi today slapped a total penalty of Rs 30 lakh on Supertex Industries promoter group firm and another individual for alleged fraudulent trade practices in shares of the company back in 2009.
In two separate orders, Securities and Exchange Board of India (Sebi) has imposed a fine of Rs 20 lakh on Supertex's promoter Super Infincon and Rs 10 lakh on Danish Merchant, a preferential allotee of the company's shares, for indulging in synchronised trades in the scrip of the company.
"It is observed from the Investigation Report (IR) that the noticee (Super Infincon), who is a Promoter group entity has executed synchronised trades with Danish who is one of the preferential allottee of the shares of Supertex Industries Ltd," Sebi said in a order today.
Sebi in its ruling against Merchant held that he had transferred Supertex's shares in off market to one Kapilaben Somabhai Patel who had used them to execute circular trades, synchronised trades, reversal trades and self trades in the firm's shares.
The activities of the two entities had led to creation of artificial volume in the Supertex shares leading to false and misleading appearance of trading in the scrip.
Sebi had conducted a probe into the trading in shares of Supertex for the period January 1, 2009 to August 31, 2009.
The regulator found that the scrip opened on BSE at Rs 26.5 on January 1, 2009, reached a period high of Rs 64 on August 5, 2009, period low of Rs 12.5 on February 5, 2007 and closed at Rs 54.6 on August 31, that year.
