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Journalism of Courage
Market regulator Sebi today imposed a total penalty of Rs 10 lakh on four entities for fraudulent dealings in shares of T Spiritual World.
Securities and Exchange Board of India (Sebi) has slapped a fine of Rs 2.50 lakh each on — Manjula Jain,Umesh Kumar Thaker,Jinprabh Securities and SIL Leasing & Industrial Finance — for fraudulent and manipulative trading.
In its order,Sebi said it is imposing “a penalty of Rs 2.50 lakh each on the noticees (the four entities) and thus a total of Rs 10 lakh under…the Sebi Act”.
The regulator had carried a probe into the trading of T Spiritual from July 12,2004 to February 4,2005.
Sebi said the shares of the company opened at Rs 27.85 on July 12,2004 and closed at Rs 5.06 on February 04,2005.
During the probe period,a total 2.08 crore shares got traded in 130 days with an average daily volume of 1.59 lakh shares,it added.
The probe revealed that a group of clients including the four entities connected to T Spiritual and to each other had dealt in the shares of the firm in a fraudulent manner that created false and misleading appearance of trading,artificial volume,price increase and offloaded their shareholding in the market.
Sebi said “it is established that the entities connected to the noticees had executed fraudulent trades in the scrip of T Spiritual which created false and misleading appearance of trading by creation of artificial volumes in the scrip”.
“This has facilitated the noticees to sell large quantities of shares of T Spiritual in the market,” it added.
