Markets regulator Sebi today imposed a total penalty of Rs 45 lakh on three individuals for fraudulent trading in the shares of KGN Enterprise Ltd.
It was alleged that three individuals -- Sandhya Sahebrao Badekar, Siya Bansal and Rajan Bansal -- had contributed to price manipulation in the scrip of KGN by way of repetitive New High Price (NHP).
A probe conducted by Sebi into the dealings in shares of KGN during the period from December 2011 to December 2012 found that the three individuals, through their 11 irregular trades, contributed Rs 250 NHP or 83.33 per cent of market NHP on December 27, 2011.
Noting that this kind of fraudulent activity seriously affects the normal price discovery mechanism and threatens the integrity of the securities market, Sebi said they violated various provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices).
Accordingly, Securities and Exchange Board of India (Sebi) has levied a fine of 15 lakh each on the three individuals.
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