Sebi imposes Rs 70 lakh fine on 10 entities for fraud trade

Markets regulator Sebi Thursday imposed a total penalty of Rs 70 lakh on 10 entities for indulging in manipulative trade in the shares of Shree Global Tradefin.

The Securities and Exchange Board of India (Sebi) had conducted an investigation into the company's shares, listed on BSE, for the period April 2010 to January 2011 for possible violation of the regulatory norms.

The probe found that all 10 entities had indulged extensively as a group while executing match trades and some of these had executed repetitive self-trades as well as match trades.

By indulging in the manipulative trades, Sebi said the entities created a false and misleading appearance of trading in the scrip.

"I am of the view that the present case clearly brings out the role played by the entities, which is manipulative manner with an element of fraud and unfair trade practices," Sebi Adjudicating Officer Sahil Malik said in an order.

"The said match trades and self-trades during the investigation period for such volumes and over a period of time further establishes that the entities were acting in concert and such trades could not have been carried out without the meeting of minds," the order noted.

"The entities being related/connected with one another, had traded in the scrip in a manipulative manner and thus violated .... the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations," it added.

Accordingly, the regulator levied a fine of Rs 10 lakh each on Sanjay Jethalal Soni, Krupa Sanjay Soni, Krunal Gopaldas Rana, Dhirenkumar Dharamdas Agarwal; and Rs 5 lakh each on J M Soni Consultancy, Mahesh Somabhai Desai, Jimish Jitendrabhai Soni, Amul Gagabhai Desai, Arif Gulammustufa Shaikh and Pravinbhai Daduji Thakor.

In a separate order, the capital markets watchdog slapped a fine of Rs 5 lakh on Ranisati Dealer for its failure to submit the desired information or documents sought by it through summons issued in July 2014 in the matter of Ravi Kumar Distilleries Ltd.

Separately, Sebi imposed a penalty of Rs 2 lakh on Skyes & Ray Equities (I) Ltd for failing to comply with the provisions of quarterly or monthly settlement of funds and securities of clients on various occasions. By doing this, it did not exercise due care and skill in carrying out the business of the stock broker.