Market regulator Sebi today imposed a total penalty of Rs 7.50 lakh on three entities for alleged manipulative trading in the scrips of Videocon Industries Ltd (VIL) and NRB Bearings Ltd (NBL).
Sebi has slapped penalties on Intec Shares and Stock Brokers Ltd (ISSL),Mansukh Securities & Finance Ltd (MSFL) and one Pankaj Gupta,according to three separate orders.
According to the regulator,the defaults committed by the three entities were “repetitive in nature”.
While ISSL and MSFL,have to shell out Rs 3.5 lakh separately as penalties,Gupta has to pay a fine of Rs 50,000.
Sebi said the penalties are commensurate with the defaults committed by them.
“Regarding repetitive nature of the default,I note that ISSL was indulged in the manipulative trades in the shares of Videocon Industries Ltd (VIL) as well as NRB Bearings Ltd (NBL) for six trading days,” the regulator said in the order on ISSL case.
In a order on MSFL,Sebi said the entity was “indulged in the manipulative trades in the shares of VIL as well as NBL for six days”.
It was found that ISSL and MSFL were involved in the manipulative trading of the companies for a period of 6 days.
These penalties have been imposed after a Sebi probe found that the three entities,including Gupta,were involved in manipulative trading in VIL and NBL shares for the period May 1,2004 to June 15,2004.
Meanwhile,the regulator had imposed a penalty of Rs 2 lakh each on ISSL and MSFL on July 30 this year for manipulative trading in VIL shares during the period from January 14,2004 to February 26,2004.
Sebi had earlier slapped a fine of Rs 10,000 on Gupta for allegedly indulging in unfair trading in VIL scrips.
As per the regulator,all the three entities have paid the earlier penalties.