Latest News | Sebi Levies Rs 21 Lakh Fine on Aplaya Creations, 2 Others

New Delhi, Oct 27 (PTI) Capital markets regulator Sebi on Tuesday imposed a total penalty of Rs 21 lakh on Aplaya Creations and two individuals for misusing funds raised through preferential issuance of securities in 2013.

The watchdog imposed a fine of Rs 11 lakh on Aplaya Creations Ltd, and Rs 10 lakh on Aplaya Creations, Ramawtar Gupta and Pramod Kumar Gupta, payable jointly and severally.

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Sebi had carried out an investigation in the shares of Aplaya Creations for February to December 2013 period.

During the probe, it was found that Aplaya Creations had diverted funds raised through preferential issue and utilised it for making loans and advances.

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The entity also failed to disclose the same as required under the listing agreement, thereby violating the LODR (Listing Obligations and Disclosure Requirement) norms, Sebi said in an order.

In addition, Aplaya Creations failed to submit the information which was sought vide summons by the regulator.

Ramawtar Gupta and Pramod Kumar Gupta were the executive directors and were present in the meeting when preferential allotments were approved, the regulator noted.

Thus, they were responsible for the day to day functioning of the company, it added.

By failing to ensure fund utilisation as per the objective of the issue and report variation in utilisation of funds, Ramawtar and Pramod violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, Sebi said.

Meanwhile, through three separate orders passed on Tuesday, the watchdog slapped a fine of Rs 5 lakh each on Gowdanakunta Shilpa, Mukesh Kankariya and Vinod Hari Mhatre for fraudulent trading activities in the scrip of Mahavir Advanced Remedies Ltd (MARL).

As per the orders, the individuals had sold MARL shares in small quantities, leading to a price rise despite the availability of large buy orders in the system and had manipulated the scrip price and created a misleading appearance of trading by executing such trades.

By doing so, they violated the norms of prohibition of fraudulent and unfair trade practices, as per the regulator.

Separately, in an order passed on Monday, the regulator imposed a fine of Rs 5 lakh on one Pradeep Kumar Kayan for indulging in fraudulent trading in illiquid stock options segment on the BSE.

According to a separate order, the watchdog slapped a fine of Rs 3 lakh on Anurodh Merchandise for violating takeover norms with respect to acquisition of shares in Onesource Techmedia Ltd.

Besides, Sebi levied a fine of Rs 2 lakh on Arihant Superstructures Ltd (ASL), through a separate order, for disclosure lapses.

It was found that Arihant failed to make disclosure regarding a transaction made by its independent director (Dinesh Babel) and Dinesh Mohan Babel HUF, who was a specified person under ASL's code of conduct.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)