Regulator Sebi today barred three individuals from capital markets for three years for indulging in fraudulent trade activities in shares of Exelon Infrastructure.
These individuals are Kanta A Desai, Sneha P Desai and Dimple P Desai, according to a Sebi order.
"I have no hesitation in holding that the three noticees are either directly or indirectly connected to the manipulation and fraudulent scheme brought out in the investigation and were the end beneficiaries of such price manipulation.
"Based on all these facts, I hold that the three noticees namely -- Kanta A Desai, Dimple P Desai and Sneha P Desai -- violated... Sebi PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations," Sebi Whole-Time Member G Mahalingam said.
Accordingly, the Securities and Exchange Board of India (Sebi) has restrained the three individuals from buying, selling or otherwise dealing in securities for three years.
Sebi conducted a probe into the trading in the scrip of Exelon between December 8, 2010, and January 20, 2012 and found that the 52 entities, including the firm, and its directors made corporate announcements of a positive nature to the BSE, without any intention of implementing them. These announcements were intended to increase the price and attract interest of investors.
These 52 entities were sub-divided into four sub-groups, including these three individuals, part of the second sub group -- which had off-market dealings with each other in Exelon shares during the investigation period.
In an off-market transaction, it is normally presumed that the involved entities are related entities or known to each other.
Besides, Sebi said "the direction of impounding of assets including bank accounts/demat accounts/properties contained in the order dated June 7, 2016, and modified subsequently vide order dated September 21, 2016 shall stand revoked against all the... noticees".
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