Markets regulator Sebi on Friday levied a total fine of Rs 13 lakh on nine individuals for contributing to fraudulent price rise in the scrip of Shreekrishna Biotech Ltd.
Sebi conducted an investigation into the scrip of the firm during November 2012 to July 2015 period after observing high volatility in the price of the scrip.
During the course of investigation, it was found that the price of the scrip increased from Rs 10.83 on November 20, 2012 to Rs 337.15 on December 18, 2014 and then declined to Rs 156.60 on July 21, 2015.
Besides, Sebi noted that Shreekrishna Biotech Ltd (SBL) made a preferential allotment of shares to few of the non-promoter entities in January 2014, and a steep rise in the scrip price was noted after it.
"Noticees dealt in the scrip of SBL in a coordinated manner to artificially inflate the price of the scrip of SBL, thereby inducing gullible investors to trade in the scrip of SBL, despite weak fundamentals of the company," Sebi said.
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The individuals have violated the Prohibition of Fraudulent and Unfair Trade Practices Regulations and a fine of Rs 5 lakh has been imposed on Vipul Mohanlal Joshi, while others have been fined Rs 1 lakh each.
In two separate orders, the regulator also levied a total fine of Rs 22 lakh on promoters of Pawansut Holdings Ltd -- Archit Jindal and Aanchal Jindal -- for failing to disclose changes in their shareholding in the firm as required under relevant market regulations.
While levying the penalty, Sebi noted that Archit Jindal and Aanchal Jindal failed to make requisite disclosures related to change in shareholding pattern of the promoter group on fourteen instances.
Consequently, a fine of Rs 11.5 lakh was imposed on Archit Jindal, while a fine of Rs 10.5 lakh was levied on Aanchal Jindal.
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