Markets regulator Sebi has slapped penalties totalling Rs 1.6 crore on two entities for indulging in fraudulent trading in shares of Kavveri Telecom Products Ltd (KTP).
Markets regulator Sebi has slapped penalties totalling Rs 1.6 crore on two entities for indulging in fraudulent trading in shares of Kavveri Telecom Products Ltd (KTP). The Securities and Exchange Board of India (Sebi) in an order said it has levied a fine of Rs 90 lakh on Antala Real Broking & Impex Private Ltd and a penalty of Rs 70 lakh on Vishu Enterprises. The regulator had conducted a probe into trading of shares of Kavveri Telecom Products Ltd for the period from June to December 2010.
The probe found that these entities along with other connected entities had created false or misleading appearance of increased trading in the securities market and artificially raised the volume in KTP shares by way of synchronised trading; and had indulged into price manipulation of the scrip by way of placing orders beyond last trading price, placing first order beyond LTP, creating ‘new high price’ in the scrip.
By indulging in such activities, the entities had violated the regulations of PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, the regulator noted.
“It is established without doubt that the Noticee 1-Antala and Noticee 2 -Vishu through its proprietor Mr Vishwanath Hetram Varma had indulged in price rise by entering buy/ sell orders at a higher price than the last traded price and by entering buy/ sell order at a New high price and first trade of the day then existing market price, in the scrip of the company”, said General manager and adjudicating officer K Saravanan and thereby imposed fine on entities.