In two separate orders released today, Sebi has imposed "a penalty of Rs 20 lakh jointly and severally" on RTL promoter- directors -- Ravinder Kumar Garg, Amit Garg and Nitin Garg -- as well as Asha Garg, who was person acting in concert with them for violation of norms on 'Prohibition of fraudulent and unfair trade practices relating to the securities market'.
Besides, the market regulator has slapped "a consolidated penalty of Rs 3 lakh" on a couple -- Ketan Nalinkant Shah and Hemal Ketan Shah -- for executing reversal trade in the scrip of RTL which had led to "false and misleading appearance of trading in the scrip and hence is fraudulent in nature".
According to Sebi, RTL promoters and Asha Garg "had transferred shares in off market to one Manish Ratilal Shah who in turn along with 13 group entities had used the shares to execute circular trades, synchronised trades, reversal trades and self trades in the scrip of RTL".
This had resulted in creation of artificial volumes in the said scrip leading to false and misleading appearance of trading in the scrip and had also artificially increased the price of the shares.