Markets regulator Sebi has restrained four entities from accessing securities market for two years for executing fraudulent trading in the scrip of Seshasayee Paper and Boards Ltd (SPBL).
Sebi conducted an investigation into the trading of the scrip of the firm during December 2011 and October 2014 and found a sharp rise in the scrip price and volume.
It noted that the entities had traded among each other as a connected group.
Sebi said the entities were "connected to each other and bought and sold shares of SPBL through a common connected broker, acted as a group under a premeditated scheme / plan to indulge into circular trades at BSE (contributing to 25.27 per cent of total market volume) and NSE (contributing to 21.10 per cent of total market volume) ... and created misleading appearance of trading in the scrip without any intention of change in beneficial ownership."
The entities are Bharat Jayantilal Patel, Fidelity Multitrade, Pasha Finance and Acira Consultancy.
Barring the entities from securities market, Sebi said if the entities have any open positions in any exchange traded derivative contracts, they can close out or square off such open positions within 3 months or at the expiry of such contracts, whichever is earlier.
They can also settle the pay-in and pay-out obligations in respect of transactions which have taken place before the close of March 4, 2020.
In a separate order, Sebi restrained 21 entities from accessing the securities market for one year as they carried out fraudulent trading in the scrip of Jolly Plastic Industries Ltd.
Apart from 9 individuals, the 12 firms that have been banned from securities market are Aavia Buildtech, Aavia Softech, Accurate Buildwell , Aglow Financial Services, Bluechip Fincap Serve, Capital Securities, Century Buildmart, Mould Trading, Ocean Share Brokers, Steady Capital Advisory Services, Sure Portfolio Services, Surya Medi Tech.
The group "by trading amongst themselves below the LTP (last traded price) in the scrip have manipulated and created a misleading appearance of trading in the scrip by such trades," Sebi said.
Through a separate order, Sebi levied a fine of Rs 6 lakh on Global Earth Properties and Developers for indulging in fraudulent trade in illiquid stock options segment of BSE.
The trades executed by the firm were not genuine and created an appearance of artificial trading volumes, thereby violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations, Sebi noted and hence levied the monetary penalty.
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