Regulator Sebi on Wednesday imposed a fine of Rs 10 lakh each on Delware Polymers Pvt Ltd and Natraj Capital and Credit Pvt Ltd for not furnishing the information sought by the markets watchdog.
The Securities and Exchange Board of India (Sebi) conducted an investigation in the scrip of Focus Industrial Resources Ltd between February 2013 and July 2013 to ascertain violation of the Prohibition of Fraudulent and Unfair Trade Practices norms.
The investigation revealed that certain entities connected among themselves traded in the scrip of Focus and created significant artificial volume and manipulated the scrip price.
In this regard, Sebi issued summons to Delware and Natraj asking them to furnish certain information such as details of off-market transactions entered into by them.
However, despite receipt of the summons and constant follow-ups, the firms failed to provide the data sought by the regulator, Sebi noted.
"Non-furnishing of the details of off-market transfer of shares as mentioned in the summons....hampered the investigation and any hurdle due to non-cooperation by any person is detrimental to the interest of investors in securities market, which needs to be dealt strictly," Sebi said.
Consequently, Sebi has levied a monetary fine on the firms.
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