Sebi slaps Rs 10 lakh penalty on manipulators

Mumbai, May 17 | Updated: May 18 2006, 05:30am hrs
The adjudicating officer (AO) appointed by Sebi has imposed a penality of Rs 10 lakh on three entities involved in manipulating the stock price of Aftek Infosys Ltd.

The order passed by AO, a copy of which is posted on Sebi website said, that the three entities Phulchand Sons Investments, Add Investments and its partners Deepal Dalal and Anita Dalal and Maruti Securities were involved in the manipulating the stock price of Aftek Infosys Ltd. The regulator has conducted extensive investigations in the trading of Aftek Infosys stock between September 1, 2003 and October 8, 2003.

The regulator said that the conduct of the three entities has been fraudulent "as by way of generating artificial volumes, they have created a false impression amongst the general investors that the scrip is very active and frequently traded and which has induced the general public to deal in securities".

The regulator said that this kind of default should be viewed seriously as it affects the normal price discovery mechanism of the securities.