Sebi slaps Rs 15 lakh penalty on three individuals for fraudulent trading in RLFL

By: |
August 28, 2020 10:50 PM

Capital markets regulator Sebi on Friday imposed a total fine of Rs 15 lakh on three individuals for fraudulent trading activities in the shares of Ramchandra Leasing and Finance Ltd (RLFL)

sebi, sebi fine, sebi newsSEBI imposes fine for fraudulen transactions.

Capital markets regulator Sebi on Friday imposed a total fine of Rs 15 lakh on three individuals for fraudulent trading activities in the shares of Ramchandra Leasing and Finance Ltd (RLFL) more than four years ago. A fine of Rs 5 lakh each has been imposed on three individuals — Jhamku Devi, Kishor Kumar Mangilal and Madhubala Kishor.

Besides, a penalty of Rs 2 lakh each has been slapped on Melicent Sales Agencies Pvt Ltd and Nuria Sales Agencies Pvt Ltd for disclosure lapses with respect to their shareholdings in the company, according to an order.

Sebi had carried out an investigation into the scrip of Ramchandra Leasing and Finance for the September 1, 2015 to July 11, 2016 period. During the probe, it was found that some of the trades by Jhamku Devi, Kishor Kumar Mangilal and Madhubala Kishor were not genuine.

“The trades were for a single share each, were the first trades of the day and were amongst the three noticees as buyers and sellers. The trades created a false and manipulative impression of price increase in the scrip with a view to artificially cause the price to move up,” the order said.

They had violated the provisions of Prohibition of Fraudulent and Unfair Trade Practices norms.

Regarding the two entities, Sebi said they had admitted the lapse and attributed it to oversight. While disclosure under Regulation 29 was not made by them, the change in shareholding was reflected in the quarterly shareholding pattern of the company for the quarter ended June 2016, though with a delay of three months.

The entities had violated SAST (Substantial Acquisition of Shares and Takeovers) Regulations.

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