Sebi bans Adamina Traders for 3-yrs for fraudulent trading

New Delhi, Jan 8 () Regulator Sebi on Tuesday barred Adamina Traders from capital markets for three years for indulging in fraudulent trading in the shares of Secunderabad Healthcare.

The regulator had issued a show cause notice in September 2017 to Adamina Traders alleging that the firm manipulated the price of Secunderabad Healthcare shares and created a misleading appearance of trading and thereby violated PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) norms during the period from November 2011 to January 2015.

"The noticee (Adamina Traders) was not acting as genuine buyer and that the intent of the noticee was to mark the price higher and not merely to enter into the buy transactions carried out by it and that the noticee had placed buy orders of small quantities in order to execute trades which had a positive LTP (last trading price) impact," Sebi said in an order.

By doing so, Adamina Traders has violated the PFUTP Regulations.

Accordingly, the regulator restrained Adamina Traders from accessing securities market for a period of three years. During the period of restraint, the existing holding, including units of mutual funds of Adamina Traders will remain frozen.

The order shall come into force with immediate effect, the Securities and Exchange Board of India (Sebi) noted. SP RVK