Markets regulator SEBI today imposed a total penalty of Rs 31 lakh on 19 entities for indulging in fraudulent trading in the shares of Shri Lakshmi Cotsyn.
In an order, SEBI said noticees 1 to 17 were involved in reversal of trades on more than one day which constituted 10.74 per cent of market volume at NSE and 9.26 per cent at BSE.
Also, noticees 1 to 12, 18 and 19 were also involved in synchronised trades on more than one day which constituted 19.17 per cent of market volume at NSE and 16.81 per cent at BSE.
"Such transactions in large volumes by the noticees (19 entities) who are inter-related, through synchronised and reversal of trades persistently over a long period are in violation of... PFUTP (Prohibition of Fraudulent and Unfair Trade Practices relating Securities Market) Regulations," SEBI said.
For the violation, the Securities and Exchange Board of India (SEBI) has imposed a total fine of Rs 31 lakh on 19 entities.
The regulator had conducted an investigation into the trading activities of certain entities in the scrip of Shri Lakshmi Cotsyn during the period from July 1, 2011 to February 22, 2012.
Among the 19 entities are Bharat Gupta, CRS Traders & Exporters, CRS Wealth Creators, Deepak Kumar, Jitendra Singh, Kailash Candra, Manish Gupta, Manish Kumar, Manish Kumar Gupta, Pradeep Kumar and Sita Ram.
The others are Yogesh Rajaput, Nirbharant Constructions, Om Prakash Agarwal, Sarin Pranav, Virendra Bharadwaj, Cityon Nano Technology, Ours Trading and Holdings and Rajesh Kumar.
In seven separate orders, SEBI has imposed a total penalty of Rs 53 lakh on as many individuals for violating PFUTP Regulations while trading in the shares of five firms.
The individuals are Nita B Bhavsar, Shaishil T Jhaveri, Sonal Kiritbhai Patel, Nikhilbhai Shah, Bela T Jhaveri, Jipal Pineshkumar Shah and Ronak Ashwin Choksi.
The orders have come following a probe conducted by SEBI in the shares of Riba Textiles, Supertex Industries, Bridge Securities, Aarey Drugs and Pharmaceuticals and Winsome Textile Industries, for the period January 1 to August 31, 2009.