Sebi slaps Rs 5 lakh fine on entity for fraudulent trading

It was found that there were 19 entities, including Ethan Constructions Pvt Ltd, who were connected to each other and traded amongst themselves. These entities had contributed to a rise of Rs 6.84 in the share price from December 27, 2011 to May 4, 2012. The share price hike was 19.53 per cent of market positive LTP (Last Traded Price).

Imposing the fine on Ethan Constructions Pvt Ltd (noticee), the market watchdog said the noticee has contributed to price rise as a buyer and seller and had aided other connected entities by selling shares to increase the scrip price which resulted in manipulation of the securities.
Imposing the fine on Ethan Constructions Pvt Ltd (noticee), the market watchdog said the noticee has contributed to price rise as a buyer and seller and had aided other connected entities by selling shares to increase the scrip price which resulted in manipulation of the securities.

Capital markets regulator Sebi on Tuesday imposed a penalty of Rs 5 lakh on an entity for indulging in manipulative trade practices in the shares of Allied Computers International (Asia) Ltd more than a decade ago.

The order came after Sebi conducted an investigation in the scrip of Allied Computers International (Asia) Ltd (ACIL) on the basis of a reference received from the Income Tax Department that certain entities could have manipulated the price in the scrip of ACIL during the period from November 2007 to September 2012.

It was found that there were 19 entities, including Ethan Constructions Pvt Ltd, who were connected to each other and traded amongst themselves. These entities had contributed to a rise of Rs 6.84 in the share price from December 27, 2011 to May 4, 2012. The share price hike was 19.53 per cent of market positive LTP (Last Traded Price).

Imposing the fine on Ethan Constructions Pvt Ltd (noticee), the market watchdog said the noticee has contributed to price rise as a buyer and seller and had aided other connected entities by selling shares to increase the scrip price which resulted in manipulation of the securities.

“It is established that the noticee has contributed to substantial and unusual price rise in the scrip of ACIL by trading with other connected entities and significantly contributed to positive LTP,” Sebi said.

Also, the noticee was restrained from the securities market for a period of three months through an order in August 2021, it added.
Through such acts, the noticee flouted the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.

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