Sebi slaps fine on 2 individuals for not complying with summons in Videocon case

Markets regulator Sebi on Wednesday levied a fine of Rs 5 lakh each on two individuals for failing to comply with the summons issued by the authority in a matter pertaining to violation of market norms while dealing in Videocon Industries shares.

The individuals, Surajit Dutta and Mithilesh Kumar Jha, failed to comply with the summons dated November 20, 2019, January 6, 2020, January 13, 2020, and January 20, 2020, issued to them by the investigating authority, Sebi noted in two separate orders.

Sebi conducted an investigation between April 2017-September 2017 in the scrip of Videocon Industries for the possibility of insider trading and volume manipulation by certain entities.

Investigation observed that a group of 12 connected entities were trading on NSE and BSE and they allegedly entered into trades that were in the nature of reversal/ synchronized/spot trade/ off market transaction.

Their act of not complying with the summons hampered the investigation process. Their conduct ''shows brazen unwillingness'' on their part to cooperate with the investigation of Sebi, a statutory regulator and such defaults seriously compromise the regulatory framework, the regulator said in similarly worded separate orders.

Sebi further said that not paying heed to the summons issued by Sebi and resultant non-cooperation with the process of investigation cannot be taken lightly. Consequently, the individuals are facing fine of Rs 5 lakh each.

In separate orders, Sebi levied a fine of Rs 5 lakh each on six entities for indulging in non-genuine trades in illiquid stock options at BSE.

Sebi conducted investigation into the trading activity in illiquid stock options on BSE between April 2014-September 2015 after observing large scale reversal of trades in the stock options segment of the BSE.

By indulging in such trades, the entities violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.

The entities are Binay Kumar Agarwal HUF, Alpna enterprises, Gourav Khandelwal, Neelam Ramniklal Dedhia, Om Sales Corporation and Niraj Damani.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)