Market regulator Sebi has disposed of cases against three entities after they made a collective payment of over Rs 48 lakh to settle alleged charges of fraudulent and unfair trade practices in shares of GHCL Ltd.
Brokerage firm Quantum Securities paid Rs 33.41 lakh, while one Sanjay Dutt and one Prenita Dutt together remitted a sum of Rs 15 lakh to settle charges against them.
"...this consent order disposes of the said proceedings pending against the noticee (Quantum Securities and Dutts) under Sebi Act," the regulator said in similar worded orders dated January 14.
In a consent order, the company or person pays the settlement fee without denying or admitting the guilt.
The case relates to Sebi's probe into the share trading of GHCL during February- March 2006.
Quantum Securities had allegedly entered into cross and synchronised deals on behalf of its clients and had "aided and abetted" its main clients to create artificial volumes in GHCL's scrips during the period under investigation.
It was also alleged that the brokerage firm had taken third party delivery of shares.
Regarding the two individuals, Sebi said they had bought shares off-market from one of their clients and sold them in the market to the same person by executing circular or synchronised trades.
The consent terms proposed by these entities were placed before Sebi's High Powered Advisory Committee on consent in October last year.
The committee recommended the case for settlement on the payment of the amount, which was also approved by Sebi following which Rs 33.41 lakh and Rs 15 lakh was remitted by Quantum Securities and two individuals respectively.