Latest News | Sebi Levies Rs 7 Lakh Fine on BDS Share Brokers for Fraudulent Trading
Get latest articles and stories on Latest News at LatestLY. Markets regulator Sebi on Wednesday imposed a penalty of Rs 7 lakh on BDS Share Brokers Pvt Ltd for indulging in fraudulent trading in the scrip of Nagpur Power & Industries Ltd (NPIL).
New Delhi, Sep 9 (PTI) Markets regulator Sebi on Wednesday imposed a penalty of Rs 7 lakh on BDS Share Brokers Pvt Ltd for indulging in fraudulent trading in the scrip of Nagpur Power & Industries Ltd (NPIL).
Based upon a joint examination conducted by BSE and NSE, an investigation was conducted by the regulator in trading of shares of NPIL from December 2011 to October 2014.
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Sebi found that BDS Share Brokers executed self trades or placed orders in small quantities in the scrip of the company during different time periods of investigation, contributing to a positive last traded price (LTP).
BDS Share Brokers significantly contributed to the positive LTP, indicating that the self trades were part of the scheme to manipulate and mark the price of the scrip of the company upward and create a misleading appearance of trading in the scrip of the company, Sebi said in an order.
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BDS Share Brokers repeatedly engaged in placing orders in small size and failed to give any plausible reason regarding its trading pattern of placing buy order in small quantities, and this act cannot be considered as normal market practice or trading pattern, the order said.
By indulging in such acts, BDS Share Brokers created a false and misleading appearance of trading in the securities market and manipulated the price of the scrip of NPIL and violated the Prohibition of Fraudulent and Unfair Trade Practices norms, it added.
Accordingly, the regulator levied a fine of Rs 7 lakh on BDS Share Brokers.
In two separate orders, Sebi levied a fine of Rs 2 lakh each on two individuals -- Rekha Jain and Sanket Rakesh -- for not making timely disclosures pertaining to change in their shareholding in SRK Industries Ltd.
The change in shareholding was due to a scheme of arrangement approved by High Court of Bombay and High Court of Madras for merger of Transcend Commerce Ltd with SRK Industries.
The individuals, being the promoters of the company, had failed to provide complete and timely information to the public and regulators, thereby violating the provisions of PIT (Prohibition of Insider Trading) norms, Sebi said in similarly worded orders.
(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)