The Securities and Exchange Board of India (Sebi) had conducted an investigation in the share dealing of Sudar Industries (earlier known as Sudar Garments) on March 11, 2011 - the day when the firm got listed - for any possible violation of securities laws.
The probe found that Crosseas Capital had executed self trades leading to false and misleading appearance of trading in the shares of Sudar Industries.
"...noticee (Crosseas Capital) had executed large volumes of manipulative self trades which resulted 2.42 per cent of the total market volume in the scrip of SIL (Sudar Industries) at BSE and 1.55 per cent of the total market volume at NSE," Sebi General Manager and Adjudicating Officer Rachna Anand said in an order.
"By such manipulative act/practice/artifice/mechanism and failure to comply with the code of conduct," Sebi said Crosseas Capital violated provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms and code of conduct under stock brokers' regulations.
Accordingly, Sebi has fined Rs 1 crore for violating the PFUTP Regulations and another Rs 10 lakh for not adhering to stock brokers' norms.
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