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Sebi imposes Rs 5 lakh fine on an entity for fraudulent trading activities


NEW DELHI: Cash markets regulator Sebi on Thursday imposed a penalty associated with Rs 5 lakh on H Bhavesh Securities in addition to Commodities Pvt Ltd (HBSPL) for indulging in manipulative trading activities.

In February, this watchdog had restrained 39 entities from accessing this securities market and disallowed them from buying, promoting or dealing in securities in different manner.

An investigation was initially conducted into five scrips — Spectacle Infotek Limited, LGS Global Ltd, Goldstone Technologies Ltd, Gemstone Assets Ltd, and Well Load up Papers & Containers Limited.

It was found the fact that few entities along with the 39 entities indulged in tricks of these scrips. HBSPL (noticee) was one of the entities the fact that had transferred shares to numerous entities through off-market moves in five scrips.

These entities were found to own created artificial volume during these scrips and, thus, this act of the noticee was initially instrumental in creating unnatural volume, Sebi said around an order on Thurs night.

Further, Sebi said this off-market transfers were made along with manipulative intent which is additional corroborated with the fact that major shares were transferred to company directors of the noticee who consequently used these shares for creation of artificial amounts in the market.

HBSPL implemented multiple off-market transfers using the group entities that assisted them in creating unnatural volume in the scrips associated with Spectacle, LGS, Goldstone, Gem stone and Wellpack during the particular periods of investigation, this order noted.

Such work of aiding and abetting manipulative trades is certainly inside the nature of causing damaging impact in disturbing this equilibrium of fair market mechanism, Sebi’s Adjudicating Police officer B J Dilip stated in the order.

In an individual order, the regulator accessed a fine of Rs 1 lakh on Sital Leasing and Finance Limited for violating PIT (Prohibition of Insider Trading) best practice rules. Sebi found that Sital Leasing and Finance still did not make required disclosures associated with inter-se transfer of stocks and shares between two promoters into the stock exchange.

Separately, the watchdog imposed a penalty of Rs 1 lakh on particular person, Kanchan Bihani, in the matter of Sanjivani Paranteral Ltd for disclosure lapses.

In an purchase passed on Wednesday, this Securities and Exchange Plank of India (Sebi) added a fine of Rs 2 lakh on Anoop Kumar Garg over disclosure lapses in the matter of Centron Manufacturing Alliance Ltd.

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