Sebi, the capital markets regulator, has imposed fines totaling Rs 1.76 crore on 26 individuals for engaging in fraudulent trading activities in shares of Gala Global Products Ltd (GGPL).
The regulator imposed penalties ranging from Rs 5,000 to Rs 10,000.
The Securities and Exchange Board of India (SEBI) conducted an investigation into the GGPL Scrib during the period from December 2017 to April 2018.
According to the censor, the individuals were related to each other and indulged in mirroring their trades among themselves for the purpose of creating an artificial volume.
It has also created a false and misleading appearance of trading in the company’s shares without the intention of changing the actual beneficial ownership.
Moreover, it was revealed that individuals (notices) while acting in tandem acted in a manipulative manner to inflate the share price.
The regulator also noted that some individuals, by trading among themselves, contributed to the increase in the price of the new stock.
“…the notice trades created a misleading appearance of trading and contributed to the manipulative increase in GGPL’s share price,” Sebi said in an order passed on Tuesday.
They have violated the provisions of the PFUTP (Prohibition of Fraudulent and Unfair Business Practices) regulations.
“By executing manipulative deals, as implemented by notifications related to the GGPL issue, the price discovery system itself is affected. It has also had a negative impact on the fairness, integrity and transparency of the stock market,” Sebi said. Imposing sanctions.
In a separate order, Sibi fined Woodlight Infrabuild Pvt Ltd (now Suvarchas Buildmart Ltd), Teagan Traders India Pvt Ltd and Prabha Bhandari for breaching PFUTP standards in the matter of Siddarth Businesses Ltd (now Shivamshree Businesses) for breaching PFUTP standards. Limited).
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