Fraud trade: Sebi imposes Rs 54 lakh fine on 8 individuals

By: |
New Delhi | Published: September 1, 2018 8:25:58 PM

Markets regulator Sebi has imposed a fine of Rs 54 lakh on eight individuals for acting in a fraudulent manner to increase the share price of Svaraj Trading & Agencies.

Sebi imposes Rs 54 lakh fine on 8 individuals (Reuters)

Markets regulator Sebi has imposed a fine of Rs 54 lakh on eight individuals for acting in a fraudulent manner to increase the share price of Svaraj Trading & Agencies. Following an observation that there was a significant rise in the share price of Svaraj Trading & Agencies Ltd (STAL), the regulator conducted an investigation into dealings in the scrips of the firm for the period from September 2013 to November 2014.

Pursuant to the probe, Sebi observed that from September 2013 to August 2014, eight connected individuals allegedly indulged in manipulation of the share price of STAL at BSE and thereby violated PFUTP (Prohibition of Unfair Trade Practices related to Securities Market) Regulations.

The individuals are Mukesh Kumar Sohanlalji Gupta, Rahul Kamalkant Parasrampuria, Anil Vishnu Bharti, Rajesh Jayantilal Savadia, Prakash Chandra Purohit, Bhagwat Singh Kitawat, Neha B Raval and Shekhar D Vaishnav. “Common trading behaviour and concerted efforts adopted by noticees (eight individuals) in the present matter clearly shows that there was a prior meeting of mind between noticees at some level,” Sebi said in an order dated August 31.

According to the order, the eight individuals through their manipulative or fraudulent dealing in shares of STAL from September 2013 to August 2014, gave significant price rise of Rs 108.35, which is 77.8 per cent of the total price rise of Rs 139.65 of the scrips.

Noting that the individuals “have acted in a fraudulent manner to give rise to the price of the shares of STAL” from September 2013 to August 2014, the regulator said they have violated the provisions of the PFUTP Regulations. While Gupta has been penalised Rs 15 lakh, Parasrampuria has to pay Rs 10 lakh. Bharti and Savadia have been fined Rs 7.50 lakh each.

Purohit and Kitawat have to pay Rs 5 lakh each, and Raval and Vaishnav Rs 2 lakh each.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Ordinances on inter-state farm trade, contract farming out of judicial process
2Overcoming clearance delays: Embedded approvals for mineral blocks
3Leash on spending: Govt puts a pause on new schemes