Sebi imposes Rs 95 lakh on 19 people for fraudulent buying and selling

New Delhi: Capital markets regulator Sebi has imposed a penalty of Rs 95 lakh on 19 people for indulging in manipulative buying and selling within the shares of International Infratech and Finance Restricted.

They’ve been directed to pay the penalty inside 45 days, the Securities and Change Board of India (Sebi) stated in its order on Friday.

The regulator performed an investigation within the scrip of International Infratech and Finance Ltd (GIFL) for the interval December 2017 to February 2018 to establish any violations of PFUTP (Prohibition of Fraudulent and Unfair Commerce Practices) norms.

In its probe, Sebi discovered that 19 individuals have adopted a uniform technique of executing 3,266 trades in a considerable amount of shares, constituting 12.86 per cent of complete market quantity in a synchronised method by a lot of trades starting from 87 to 458 trades on every day for 39 days.

“Such a repeated and uniform technique of synchronised trades involving substantial amount of shares was adopted by noticees as a way to create a deceptive look of buying and selling, with none change of useful possession, and thus was a fraudulent exercise resorted to by noticees as a way to mislead traders,” Sebi stated.

The synchronised trades, which had been executed as a way to mislead traders and created a deceptive look of buying and selling within the scrip of GIFL amounted to fraudulent exercise by way of PFUTP guidelines, it added.

Accordingly, the regulator has levied a high quality of Rs 5 lakh every on 19 people, together with Harishkumar Kantilal Patel, Vishalkumar Krishnakant Borisha, Pardhi Dhirubhai Khanabhai, Bhavin Natwarlal Panchal, Ankit Jagdishbhai Pithava, Ketan Pravinbhai Panchal, Praveen Kumar and Rameshchandra Chhitubhai Patel.