Sebi slaps Rs 50 lakh fine on 6 entities for fraudulent trade in Polar Pharma shares
The regulator levied a fine of Rs 20 lakh on Peeyush Agarwal, Rs 10 lakh on DPK Stock and Securities and Rs 5 lakh each on Shivam Investments, Caps Finstock Services, AJC Securities & Finance and Supreme Lease Finvest.
The entities indulged in creation of artificial volume through significant quantity of synchronised trading and were also involved in price manipulation by contributing significant positive last trading price (LTP) variation, thereby taking advantage of price movement and made wrongful gains of Rs 1.73 crore, Sebi found.
By indulging in such activities, the entities violated the provisions of Prohibition of Fraudulent and Unfair Trade Practices (PFTUP) norms, the regulator noted.
In separate orders, the regulator imposed fines of Rs 5 lakh each on Voltaire Leasing and Finance Ltd and Cheminare Trade Comm for executing non-genuine trades in stock options segment on BSE that led to creation of artificial volume and hence violated PFTUP norms.
Separately, Sebi also slapped a penalty of Rs 5 lakh on SW Capital for misutilisation of client funds and securities.
The regulator, in separate orders, levied a fine of Rs 3 lakh each on DBFS Securities, VRise Securities and Fort Share Broking for not complying with Securities Contract Regulation Act (SCRA).
Sebi found that DBFS Securities used "funds of credit balance clients, even if for short periods, till debit balance clients made respective pay-ins, so as to avoid additional bank charges on the OD (overdraft facility)".
VRise Securities misused clients' funds on several occasions for debit balance clients and once for its own purpose and thereby failed in performing its duties as a registered stock broker, Sebi noted.
It further said that Fort Share Broking failed to settle the accounts within the stipulated timeline. AST SP RVK