Capital market regulator Sebi today slapped a total fine of Rs 3.3 crore on 59 entities including individuals and brokerage firms for allegedly indulging in fraudulent trading in the shares of Richa Industries.
In an order, Securities and Exchange Board of India (Sebi) has levied fine on these entities for violating rules related to Prohibition of Fraudulent Trading Practice (PFUTP) Regulations and brokers' norm.
The penalties varies from Rs 5 lakh to Rs 7 lakh.
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According to Sebi's order, these 59 entities allegedly indulged in various manipulative and fraudulent trades and executed off and on market transactions in the scrip of Richa Industries India and had created artificial volumes and manipulated the company's share price.
Among the 59 entities, two stock brokers -- Cholamandalam Securities (formerly known as DBS Cholamandalam Securities) and Mangal Keshav Securities -- have been penalised Rs 7 lakh each for "executing the fraudulent and manipulative trades on behalf of their clients belonging to the group entities which created artificial volumes and price rise in the scrip of Richa Industries" and also violating brokers' norm.
The regulator had conducted a probe into the alleged irregularity in the matter of trading activities of certain entities in the scrip of Richa Industries and into the possible violation of regulations made there during December 2008-2009.
