Markets regulator Sebi on Friday levied a fine totalling Rs 80 lakh on Aplaya Creations Ltd, three of its officials and two other entities for conducting fraudulent trading in the scrip of the firm.
Officials of Aplaya Creations include Managing Director Ramawtar Gupta and Director and Chief Financial Officer Pramod Kumar Gupta.
The order follows an investigation conducted between April 2014 and July 2015.
Sebi during the investigation found that the firm had come out with preferential allotment and thereafter, the price of the scrip was artificially manipulated by Maheswari Financial Services Pvt Ltd and Vemuri Finvest Pvt Ltd by frequently putting sell orders over the last traded price.
At a subsequent stage, the preferential allottees were provided exit at the manipulated price by the exit providers.
"These acts of preferential allotment, price manipulation and subsequent providing of exit constitutes a scheme. The scheme has in effect resulted in benefit to the preferential allottees," as per the Sebi order.
Sebi concluded that "the company had come out with preferential allotments and had devised a scheme to manipulate the price of the scrip to benefit the preferential allottees."
While levying fine on the officials, Sebi said "every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence."
Consequently, a fine of Rs 15 lakh on Aplaya Creations, Rs 10 lakh each Ramawtar Gupta and Pramod Kumar Gupta, Rs 20 lakh on Maheswari Financial Services Pvt Ltd and Rs 25 lakh Vemuri Finvest Pvt Ltd was imposed by Sebi.
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