Sebi imposes Rs 30 lakh penalty on 12 entities for fraudulent trading activities

During the probe, it was found that some of the noticees had established a price of Rs 720 per share of the company during a special pre-open session which was much higher than the last traded price.

Sebi on Tuesday imposed penalties totalling Rs 30 lakh on 12 entities for indulging in fraudulent trading activities in the shares of Sital Leasing and Finance Ltd. The Securities and Exchange Board of India (Sebi) had conducted an investigation in the scrip of the company during the April 20, 2015 to October 30, 2016 period.

The 12 entities and individuals are referred to as noticees. During the probe, it was found that some of the noticees had established a price of Rs 720 per share of the company during a special pre-open session which was much higher than the last traded price. Thereafter, they traded amongst themselves at a price near to the established price and thereby marked the price at the same level in an artificial and misleading manner.

Further, they had repeatedly entered into trades among themselves and contributed significantly to positive last traded price, according to a Sebi order. Sebi noted that the noticees by trading amongst themselves created an artificial impression of liquidity and maintained the price at an artificial level in the range set during the special pre-open session.

By doing so, the noticees violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, as per the order. While imposing the fine, the watchdog said that the company is a non-banking financial company and its price as on date continues to be in the same range as established during the investigation period.

Also, the probe has not brought out the gains if any made by the promoters by establishing the price in this range and the promoter holding has continued to be in the same range as during the investigation period. Thus, the promoters have not gained by off loading their shares at a high price, Sebi said. A fine of Rs 30 lakh has been levied on Utsav Securities Pvt Ltd, Amita Singla, Ramesh Kumar Singla HUF, Sachin Goel, Sameer Goel, Mekaster Finlease Pvt Ltd, Sanwar Mal Nai, Priti Jain, Virendra Jain, Babita Jain, Avail Financial Services Pvt Ltd and Bharat Bhushan. The amount has to be paid jointly and severally, as per the order.