 "Sebi")
Sebi has slapped a total penalty of Rs 7 million on Uttar Pradesh-based Regency Hospital as well as its two promoters for fraudulent trading in the company's shares.
In two separate orders issued on Friday, Sebi imposed fine of Rs 1.5 million on Regency Hospital, and Rs 2.5 million each on Managing Director Atul Kapoor and Whole Time Director Rashmi Kapoor.
They were found violating norms pertaining to fraudulent and unfair trade practices. Both are also promoters of the firm.
Additionally, Rs 500,000 was imposed on Regency for failing to disclose to the exchange about information received from its promoters regarding their pledged securities.
The watchdog examined the movement of the scrip during the period from
April to September 2011. Subsequently, it was found that the firm and the directors along with other connected entities executed synchronised trades, reversal trades and self-trades among themselves, resulting in artificial volumes.
"Notice employed and induced the services of the connected entities to trade among themselves to show an appearance of volume in the market by also executing structured, synchronised, reversal and self-trades to show artificial volume.
More From This Section
"This was also coupled with the impact on traded prices by executing first trades for the day so as to set the price for trading day, contributing the price rise in the scrip,"the regulator said.
The notices are Regency Hospital and the two directors.
