Nine of the 16 entities, including Shree Shagun Financial Services and H Bhavesh Securities and Commodities, had been barred from accessing securities market by Sebi earlier in February 2011 in separate cases.
Markets regulator Sebi has imposed a total fine of Rs 1.32 crore on 16 entities for conducting fraudulent trading in the scrip of Polytex India Ltd. Nine of the 16 entities, including Shree Shagun Financial Services and H Bhavesh Securities and Commodities, had been barred from accessing securities market by Sebi earlier in February 2011 in separate cases.
The entities were banned for their role in price and volume manipulation in the scrip of Spectacle Infoteck, Goldstone Technologies, Gemstone Investments, LGS Global and Well Pack Papers and Containers, Sebi noted. It further observed that certain entities were facilitating the debarred entities to indirectly deal in the securities market during the period of restraint and “aided the debarred entities in circumventing the Sebi’s order dated February 02, 2011,” Sebi said.
In its latest order, Sebi noted that certain individuals by entering into reversal and self-trades created artificial volume in the scrip of Polytex leading to false and misleading appearance of trading in the scrip and violated Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) norms. “People who indulge in manipulative, fraudulent and deceptive transactions, or abet the carrying out of such transactions which are fraudulent and deceptive, should be suitably penalized for the said acts of omissions and commissions,” the regulator said.
It further noted that “violation of the provisions of PFUTP Regulations and Sebi’s directions vide order dated February 02, 2011 by the Noticees attract monetary penalty under Section 15HA and 15HB of the SEBI Act.” Accordingly, Sebi has imposed fines on the entities in the range of Rs 5 lakh to Rs 10 lakh each.