SEBI slaps Rs 42-lakh penalty on 14 individuals for manipulative trade in shares of Kushal Tradelink

The SEBI had conducted a probe from September to December, 2016 in the trading of KTL's shares.

Press Trust of India June 03, 2019 19:02:45 IST
SEBI slaps Rs 42-lakh penalty on 14 individuals for manipulative trade in shares of Kushal Tradelink
  • SEBI found the individuals were connected to each other, traded among themselves and manipulated the share price of KTL

  • They violated PFUTP norms making them liable for monetary penalty, SEBI said

  • In three separate orders, SEBI also imposed a total fine of Rs 15 lakh on three entities

New Delhi: Markets regulator SEBI has slapped a total fine of Rs 42 lakh on 14 individuals for executing fraudulent trade in shares of Kushal Tradelink Ltd (KTL).

The 14 individuals were fined Rs 3 lakh each, totalling Rs 42 lakh, according to a SEBI order.

The Securities and Exchange Board of India (SEBI) had conducted a probe from September to December, 2016 in the trading of KTL's shares.

SEBI slaps Rs 42lakh penalty on 14 individuals for manipulative trade in shares of Kushal Tradelink

Representational image. Reuters.

During the probe, the regulator found that the individuals were connected to each other, traded among themselves and manipulated the share price of the KTL.

"It is established that noticees (14 individuals) had contributed to manipulation in the scrip price of KTL, besides trading among themselves and indulging in synchronized and reversal trades, which are manipulative/unfair/fraudulent in nature," Sebi said in an order dated May 31.

They violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, SEBI said, making them liable for monetary penalty.

In three separate orders, SEBI also imposed a total fine of Rs 15 lakh on three entities — Mittal Pigments Pvt Ltd, MMG Steels Pvt Ltd and Manoj Goel — for indulging in manipulative trade in illiquid stock options segment of the BSE.

The entities by engaging in non-genuine transactions, created a misleading impression of trading while dealing in stock options contracts in a fraudulent manner, Sebi said in separate orders dated May 31.

By doing so, the entities violated PFUTP regulations, SEBI said.

Accordingly, a fine of Rs 5 lakh each was imposed on the three entities.

Updated Date:

also read

SEBI board to discuss fiduciaries framework, settlement mechanism on Tuesday
Business

SEBI board to discuss fiduciaries framework, settlement mechanism on Tuesday

SEBI board is likely to discuss on Tuesday a stricter framework for fiduciaries in the securities market, including auditors and valuers, along with a proposal requiring large corporates to raise 25 percent borrowings through this route from next fiscal, officials said.

Pune rains kill 15 in wall collapse, 3 dead in Mumbai; heavy downpour expected to abate by Sunday, says IMD
India

Pune rains kill 15 in wall collapse, 3 dead in Mumbai; heavy downpour expected to abate by Sunday, says IMD

Pune received its entire monthly average worth of rains between Thursday and Friday alone. Pune received 73.1 millimetres of rain in the past 24 hours, the second highest rainfall in June since 2010. Total rainfall for June currently stands at 134.3 mm, IMD said.

Stock Market Latest Updates: Sensex falls 190 points, Nifty below 9,200-mark; Reliance Industries, Asian Paints among top losers
Business

Stock Market Latest Updates: Sensex falls 190 points, Nifty below 9,200-mark; Reliance Industries, Asian Paints among top losers

Stock Market Latest Updates: Sensex falls 190 points, Nifty below 9,200-mark; Reliance Industries, Asian Paints among top losers