Markets regulator Sebi today imposed a total penalty of Rs 30 lakh on three entities for manipulative trading in the shares of realty firm Omaxe.
According to a Sebi order, the entities are Bhudev Building Materials, Glamour Builders and Reliable Township & Realtors.
The order has come following an investigation by the Securities and Exchange Board of India (Sebi) into alleged irregularity in trading activities of certain entities in shares of Omaxe during October 1 to December 31, 2008.
It was alleged that Bhudev, Glamour and Reliable had violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations.
The regulator noted in its order that during the investigation period the volume of shares traded rose on NSE from 3,05,572 to 3,96,707 and the price of the scrip fell from Rs 98 to Rs 64.50.
"The Bhudev group (comprising the three entities) created artificial volume by trading among themselves and all the alleged trades were synchronised in terms of quantity, time and price," Sebi said.
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The trading pattern of the three entities suggests their "manipulative intent", it added.
Noting that the violation against Bhudev, Glamour and Reliable has been established, Sebi said monetary penalty should be levied on them.
Accordingly, the regulator has imposed a fine of Rs 10 lakh each on the three entities.
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