Sebi slaps Rs 25lakh fine on individual in Kohinoor Foods case

Written by PTI | Mumbai | Updated: Feb 2 2013, 11:37am hrs
Market regulator Sebi has imposed a penalty of Rs 25 lakh on an official of Temptation Foods as well as of Venture Business Advisors for his alleged role in manipulative trading in shares of Kohinoor Foods.

Securities and Exchange Board of India (Sebi), has slapped the penalty on Vinit Kumar, who according to the regulator was a Managing Director of Temptation Foods and Venture Business Advisors.

"After taking into consideration all the facts and circumstances of the case, I impose a penalty of Rs 25 lakhs ...on the noticee (Kumar) which will be commensurate with the violations committed by him," Sebi's adjudicating officer Barnali Mukherjee said in an order dated January 31.

A probe was conducted by Sebi in share trading of Kohinoor Foods for the period December 31, 2007 to February 17, 2009.

The investigation revealed that Kumar had entered into synchronised and self trades on behalf of his firms which led to creation of artificial volumes in Kohinoor Foods.

Further, it was observed that Kumar had given false and misleading information with regard to acquisition of shares by Temptation Foods which "was grave enough to induce sale or purchase of securities".

"The facts of the present case clearly brings out the ominous role played by the noticee in executing synchronised and self trades which indulged an element of fraud and unfair trade practices in the game plan of manipulation," Sebi said.

"...the practices indulged in by the noticee, gains per se were made by the noticee by making such inaccurate and misleading disclosures by a listed company which tend to mislead gullible investors and place them in a precarious position," it added.

Temptation Foods and Venture Business Advisors, are in the process of winding up their businesses.