Sebi slaps fine on 15 individuals for manipulating share prices
Capital markets regulator Sebi on Friday slapped fines totaling Rs87 lakh on 15 individuals for manipulating the share prices of Kapil Raj Finance.
image for illustrative purpose
New Delhi: Capital markets regulator Sebi on Friday slapped fines totaling Rs87 lakh on 15 individuals for manipulating the share prices of Kapil Raj Finance.
The Securities and exchange board of India (Sebi) investigated the trading activities of certain entities in the scrip of Kapil Raj Finance Ltd (KRJFL), a BSE-listed entity. The investigation was mainly to ascertain whether there was any alleged trading by the suspected entities during the period from January to April 2018. Sebi's Adjudicating Officer G Ramar said, “I note that they (individuals) engaged in circular trading without change of beneficial ownership, contributing to nearly 80 per cent of circular trading volume, and thereby creating 22.2 per cent of trading volume, which was non-genuine and artificial, which created a misleading appearance of trading.”
By creating artificial volumes, they lured investors into trading in the scrip of KRJFL, he added. Through such acts, the individuals have flouted the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms. Accordingly, Sebi imposed a fine of Rs 8 lakh each on Divyaben Hiteshbhai Gangani and Pardhi Dhirubhai Khanabhai, Rs 7 lakh each on Bhavin Natwarlal Panchal, Deepak Parsharam Salvi and Ravikumar Vinodbhai Parmar.
