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23 entities fined Rs 3.5 crore for indulging in unfair trade practices

Devdiscourse News Desk new delhi India
Updated: 19-11-2018 17:49 IST

Markets regulator Sebi has levied a total penalty of Rs 3.5 crore on 23 entities for indulging in unfair trade practices in the scrips of Saianand Commercial Ltd.

Separately, the capital markets watchdog slapped a fine of Rs 2.45 crore on 18 entities for manipulative trades in the stocks of Parichay Investments.

Some of the entities had indulged in unfair trade practices in the shares of both the companies.

The fine has been imposed on these entities in the range of Rs 5 lakh and Rs 40 lakh.

It was alleged that the entities, collectively referred as Soni Group, had created artificial volumes and misleading appearance in the securities market by trading among themselves through matched trades, reversal trades and self-trades.

Subsequently, the regulator had conducted an investigation in the shares of Saianand Commercial and Parichay Investments from January 2010 to August 2011 to examine the possible violation of the provisions of the Sebi Act.

In similar-worded orders dated November 16, the Securities and Exchange Board of India (Sebi) said it was "convinced with the allegations that entities were connected to each other and all have acted in tandem to create artificial volume in the scrip".

"By indulging in the ...manipulative trades, the entities not only created artificial volume in the scrip but also gave a misleading appearance of trading in the scrip.

"The said match trades, self-trades and reversal trades during the investigation period for such volumes and over a period of time further establishes that the entities were acting in concert and such trades could not have been carried out without the meeting of minds," as per the Sebi orders.

By indulging in such trades, these entities have violated Sebi's PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.

Last week, Sebi had levied a fine of Rs 2.45 crore on 19 entities, collectively referred to as Soni Group, for executing trades in violation of PFUTP regulation in the matter of Ushdev International.

(With inputs from agencies.)