38.6c New Delhi, India, Wednesday, April 17, 2024
Executive

Fine Imposed by SEBI on 16 Individuals For Fraudulent Trading Of Rs.1.20 crores

By VANDANA KOTHARI      03 August, 2020 05:25 PM      0 Comments
Fine Imposed by SEBI on 16 Individuals For Fraudulent Trading Of Rs.1.20 crores

On Friday, SEBI the regulator of Markets imposed fine on 16 individuals of Rs. 1.20 crores for getting involved in fraudulent trading and creating artificial volumes with respect to shares of Parichay Investments Ltd. (PIL). 

SEBI in its order said that from 21st July 2010 to 30th August 2011 an investigation was conducted into the trading of Parichay Investments Ltd (PIL) wherein it was found that some individuals were indulged as a group while executing matched trades. The individuals were directly or indirectly connected to each other while some of them were involved in executing repetitive match trades, self-trades, and price manipulation.

All the 16 individuals intended to buy PIL shares, artificially increase its price, and then sell it at inflated prices. The individuals were referred to as ‘Noticees’. The SEBI concluded that the entire scheme of the noticees was manipulative and fraudulent in nature which had created a false and misleading appearance of the trading scrip. 

Eight individuals were imposed of Rs 10 lakh fine each and the other eight were imposed of Rs 5 lakhs each which constitute Rs.1.20 crores together. 

A separate order was passed in which the watchdog slapped penalties of Rs. 42 lakhs for fraudulent trading in the shares of PSIT infrastructure and services ltd on 26 individuals. ‘The individuals were acting in a manipulative manner for increasing the price of the scrip’ said SEBI. This came out when an investigation was conducted from 1st May 2012 to 31st July 2015 into the trading and dealings in the company’s share after the regulator noticed an abnormal movement in the price on the BSE. 

The regulator said that the normal price discovery mechanism of the securities market gets affected seriously by this kind of activity.   



Share this article:



Leave a feedback about this
TRENDING NEWS

baba-ramdev-acharya-balkrishna-offer-to-make-public-apology-in-sc-for-misleading-advertisements
Trending Judiciary
Baba Ramdev, Acharya Balkrishna offer to make public apology in SC for misleading advertisements

Baba Ramdev and Acharya Balkrishna offer public apology in SC for misleading ads, court deliberates acceptance.

16 April, 2024 01:57 PM
hymen-tear-or-genital-injuries-are-not-a-sine-qua-non-to-prove-penetrative-sexual-assault-in-pocso-case-rules-guwahati-hc
Trending Judiciary
Non-tear of the hymen is of no consequence in cases of penetrative sexual assault: Guwahati HC in POCSO case [Read Judgment]

Hymen tear or genital injuries are not a sine qua non to prove penetrative sexual assault, the Guwahati High Court has held in a case under the POCSO Act, 2012.

16 April, 2024 05:06 PM

TOP STORIES

sc-sets-aside-judgment-upholding-arbitral-award-against-dmrc
Trending Business
SC sets aside judgment upholding arbitral award against DMRC [Read Judgment]

Supreme Court overturns arbitral award favoring Reliance Infrastructure subsidiary against DMRC, citing grave miscarriage of justice.

11 April, 2024 11:43 AM
delhi-hc-rejects-third-plea-for-arvind-kejriwals-removal-as-delhi-cm-blasts-petitioner-for-abuse-of-judicial-process
Trending Political NEWS
Delhi HC rejects third plea for Arvind Kejriwal's removal as Delhi CM, blasts petitioner for abuse of judicial process [Read Judgment]

Delhi High Court dismisses the third PIL plea before it seeking Aam Aadmi Party leader Arvind Kejriwal’s removal as Chief Minister of Delhi, imposes Rs. 50,000 cost on petitioner.

11 April, 2024 03:29 PM
use-of-social-media-to-interfere-with-administration-of-justice-needs-serious-consideration-sc
Trending Judiciary
Use of social media to interfere with administration of justice needs serious consideration: SC [Read Judgment]

Supreme Court warns against social media misuse in legal matters, cautions against prejudicial posts interfering with justice.

11 April, 2024 05:44 PM
two-day-conference-on-april-on-technology-and-dialogue-between-sc-and-singapore
Trending Legal Insiders
Two-day conference on April 13-14 on Technology and Dialogue between SC and Singapore

Explore AI's role in law at the India-Singapore Supreme Court conference on technology, enhancing judicial processes and access to justice, April 13-14, 2024.

12 April, 2024 06:16 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email