Sebi slaps Rs 35 lakh fine on entities, individuals for manipulative trading activities

NEW DELHI: Sebi on Wednesday slapped a total penalty of Rs 35 lakh on three entities and four individuals for indulging in manipulative trading activities in the scrip of Partani Appliances Ltd (PAL).

A fine of Rs 5 lakh each has been imposed on them.

The income tax department had forwarded a list of some scrips, including that of PAL, being traded on the stock exchange, in which there was allegedly price manipulation to generate bogus long term capital gains.

Thereafter, an investigation was carried out by Sebi for alleged price manipulation in the scrip of PAL during October 20, 2014 to March 31, 2015 period.

It was revealed that far lesser quantities of sell orders were placed by some entities and individuals even when buy orders were available for higher quantities and that they were also holding relatively higher quantities of shares of PAL.

By entering into manipulative trades, they were instrumental in establishing a price higher than the last traded price and thus contributed to increased scrip price with each of their trades, Sebi said.

In November 2018, the watchdog had barred the entities from accessing the securities market for a period of four years.

According to another order passed on Wednesday, the regulator has slapped Rs 12 lakh fine on Swallow Associates LLP for not complying with takeover norms while dealing with the shares of Zensar Technologies Ltd (ZTL).

It was found that Swallow Associates LLP, which was a promoter group entity of ZTL, did not disclose the change in its shareholding from January 4-12, 2010. This was in violation of Sebi norms.

In a separate order on Wednesday, a fine of Rs 5 lakh has been imposed on an individual -- Uma Bansal -- for indulging in fraudulent trading in the illiquid stock options segment on the BSE.

Separately, the regulator on Wednesday imposed Rs 5 lakh fine on Vinit Enterprises for its failure to furnish required information to the investigating authority of Sebi despite issuing summons in Supreme Tex Mart Ltd case.

In another order passed on Wednesday, Sebi imposed Rs 2 lakh fine on Looklike Trade Pvt Ltd for its failure to comply with the summons issued by the regulator's investigative authority in the matter of Voltaire Leasing and Finance Ltd.