Latest News | Sebi Penalises Individual for Non-compliance with Its Summons

New Delhi, Nov 28 (PTI) Capital markets regulator Sebi on Monday levied a penalty of Rs 7 lakh on an individual for not complying with summons issued by the regulator in the matter of Pro Fin Capital Services Limited (PCSL).

The order came after Sebi received a reference wherein it was, inter alia, alleged that certain entities may be manipulating the price of the scrip of PCSL and misleading the investors by recommending through a fake website to buy the said scrip.

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Thereafter, an examination was done by BSE in the scrip of PCSL.

Pursuant to BSE's examination findings, Sebi conducted an investigation in the scrip of the company for the period January-March 2019 which included the period when SMSes were circulated i.e February-March 2019 as alleged by the complainants.

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During the course of the investigation, Sebi observed that an individual -- Hanif Kasambhai Shekh (noticee) -- appeared as an end user for sending bulk SMSes as well as creation of a website for sending recommendation 'buy' for the scrip of PCSL.

The regulator issued summons to the noticee on August 26, 2021 and further sent two reminders to Shekh to seek crucial information to conclude the investigation.

However, the noticee did not cooperate with the investigating authority (IA).

By not furnishing the documents sought by IA, Shekh had hampered the process of investigation.

Therefore, the regulator slapped a fine of Rs 7 lakh on Hanif Kasambhai Shekh.

Meanwhile, in a separate order, the regulator imposed a fine of Rs 5 lakh on two entities for manipulating the scrip of Interactive Financial Services Ltd (IFSL).

The fine has to be paid jointly and severally.

The order came after Sebi conducted an investigation in respect of alleged manipulation in the scrip of IFSL during the period November 1, 2020 till December 15, 2020.

The regulator found Ashlesh Gunvantbhai Shah HUF and Saurin Jayantilal Shah (noticees) placed buy orders at higher prices, contributed to last trading price (LTP) manipulation through first trades and have led to artificial increase in the prices of the scrip of IFSL, which increased from Rs 15.90 on November 10 to Rs 20.72 on November 17, 2022, which is substantial.

Thus, act of noticees was mischievous, which entered into manipulative trades, which has the effect of disrupting the securities market and has the potential to mislead and induce genuine investors to trade in the scrip.

In another order, the regulator cancelled the certificate of registration of Market Captains Investment Advisor and its proprietor Amit Soni.

(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)