Markets regulator Sebi slapped a total penalty of Rs 22 lakh on promoters of P.M. Telelinnks and six other individuals for executing fraudulent trading in the scrip of the firm.
Out of the total fine levied by Sebi, Rs 10 lakh was on promoters -- G P Surana, Ravi Surana and Dipin Surana -- to be paid jointly and severally by them. Others are facing a fine of Rs 2 lakh each.
The order was followed by an investigation carried out by Sebi between January 2012 and September 2012, on observing unusual price movement in the scrip of P.M. Telelinnks on BSE.
Sebi noted that the individuals had caused artificial price rise in the scrip of the company by establishing a new high price and by executing trades at price higher than the last traded price.
Besides, the promoters were paying funds and shares of the company to certain suspected entities for the purpose of inflating the price of the scrip.
"The noticees dealt in the scrip of PM Tele in a coordinated manner to artificially inflate the price of the scrip, thereby inducing gullible investors to trade in the scrip of PM Tele," Sebi said.
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Regarding the promoters, the regulator noted that they had a "key role in the entire manipulation as they facilitated fraudulent activities by providing other noticees with funds and securities".
It further said that being the promoters, they had a "greater responsibility to prevent any misuse pertaining to the shares of PM Tele".