Sebi slaps Rs 1 crore fine on five persons for fraud trade

Sebi had conducted a probe in the shares of Kushal Tradelink Ltd (KTL) for the period from August 1, 2014 to March 11, 2015 in order to ascertain whether there was any violation of the provisions of the securities laws.

By: PTI | New Delhi | Published: December 22, 2017 8:53:20 pm
sebi, market fraud, kushal tradeline shares, market regulator, sebi fraud fine, indian express Sebi had conducted a probe in the shares of Kushal Tradelink Ltd (KTL) for the period from August 1, 2014 to March 11, 2015. (Express photo by Nirmal Harindran/Files)

Markets regulator Sebi on Friday imposed a penalty totalling Rs 1 crore on five individuals for indulging in fraudulent trading in the shares of Kushal Tradelink Ltd. The Securities and Exchange Board of India (Sebi) in an order said it has levied a fine of Rs 20 lakh each on Dhananjay Kumar, Amratbhai Chaturdas Patel, Narendrabhai Shivabhai Parmar, Sandip Kumar Prakashbhai Prajapati and Savan Keshavlal Prajapati. The regulator had conducted a probe in the shares of Kushal Tradelink Ltd (KTL) for the period from August 1, 2014 to March 11, 2015 in order to ascertain whether there was any violation of the provisions of the securities laws.

The probe found that these individuals had created false or misleading appearance of trading in the securities market and artificially raised the volume in KTL shares by way of synchronised trading; and had indulged into price manipulation of the scrip by way of placing orders beyond last trading price, placing first order beyond LTP, creating ‘new high price’ in the scrip. By indulging in such activities, these persons had violated the regulations of PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, the regulator noted. Accordingly, Sebi has imposed the levy on these individuals.

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