Platinum Corp to pay Rs 4.5 cr fine: Sebi

“…impose a penalty of Rs 1.5 crore each on Jayesh Shah,Parag Shah and Tushar Shah and thus a total of Rs 4.5 crore for violation of provisions (of Sebi’s )…Prohibition of Fraudulent and Unfair Trade Regulations,” the regulator said.

Sebi in its investigation revealed that PCL had allegedly made certain false,misleading corporate announcements,subsequently,the company’s share price jumped by 107 per cent during July- September 2005.

“Such announcements created artificial demand for the stock and at the same time Jayesh Shah,Parag Shah and Tushar Shah who were the promoters of PCL transferred shares of PCL to the persons connected to them and also pooled up shares from various persons and ensured to dump shares in the market,” the regulator said.

“It is alleged that such price sensitive and misleading announcements were made by the PCL to induce trading and to increase /influence price and volume of the scrip,” it added.

The daily average volumes during July-September 2005 were 17.98 lakh shares an increase of 1,272 per cent of average trading volumes prior to the announcement.

“It is also alleged that pursuant to the said corporate announcement made by PCL the noticees (Jayesh Shah,Parag Shah and Tushar Shah) in collusions with the other connected entities off-loaded their shares at such artificially risen price and made unlawful gains,” Sebi noted.

Sebi said three promoters might have profited Rs 80 lakh each by offloading 40 lakhs shares each to the investors through their fraudulent and manipulative conduct.

Last week,Sebi had imposed a total fine of Rs 10.50 lakh on these promoters for violating various norms,including those related to insider trading in acquiring shares.