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SEBI Fines Rs 1.16 Cr On 115 Entities For Fraudulent Trading

The regulator passed an ad interim ex-parte order dated August 14, 2014, where it barred Kelvin Fincap Ltd (KFL) and 43 other related entities from the securities markets and further restrained the company from raising any capital either directly or indirectly

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Capital markets regulator SEBI levied a total fine of Rs 1.16 crore on 115 entities for indulging in the manipulation of scrip in the matter of Kelvin Fincap Ltd.

In its order, the regulator imposed fines in the range of Rs 25,000 to Rs 5 lakh.

The regulator passed an ad interim ex-parte order dated August 14, 2014, where it barred Kelvin Fincap Ltd (KFL) and 43 other related entities from the securities markets and further restrained the company from raising any capital either directly or indirectly.

Thereafter, SEBI vide order dated March 31, 2015, dropped the proceedings against the two entities.

Subsequently, the market watchdog conducted a detailed investigation into the matter relating to the trading activities of certain entities in the scrip of KFL.

The investigation was conducted in three patches, Patch 1 (November 2011 to June 2013), Patch 2 (June 2013 to July 2013) and Patch 3 (June 2013 to May 2014).

The regulator found 7 noticees had contributed 90 per cent of the market positive LTP (last traded price) by selling minuscule shares of the company during the patch 1 investigation.

In addition, noticees 1 to 110 had contributed 37.77 per cent of the market positive LTP in the scrip during the Patch 3 investigation period, SEBI said in an order passed on Thursday.

The regulator also found that 39 noticees have acted as buyers and sellers in the scrip in the Patch 3 investigation.

"I note the specific role played by each of the entities either as a seller or a buyer while executing manipulative trades in the scrip of KFL, the extent of connections enjoyed by with the other connected entities," SEBI's Adjudicating Officer Vijaykant Kumar Verma said in the order.

Therefore, entities have contravened the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.

Meanwhile, in another order, the regulator slapped a fine of Rs 1.02 crore on 16 entities in a case related to fraudulent trading and other violations in the matter of Wisec Global Ltd.

The order came after SEBI investigated the trading in the scrip of Wisec Global Ltd (WGL) for the period September 2016 to June 2017.

In a separate order, the regulator imposed a fine of Rs 21 lakh on 14 entities for diverting IPO funds and other violations in the matter of Aster Silicates Ltd.

The IPO of Aster Silicates Ltd came in 2010.

In another order, the regulator levied a fine of Rs 10 lakh on 4 entities for making delay in open offer announcement in the matter of Alfa ICA India Ltd.

The amount has to be paid by the entities jointly and severally.


(PTI)


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sebi fraudulent trading