SEBI imposed penalty of Rs.1.16 crore on 115 entities for fraudulent trading

The Securities Exchange Board of India(SEBI) levied a total fine of Rs 1.16 crore on 115 entities for indulging in the manipulation of scrip in the matter of Kelvin Fincap Ltd.

The regulator’s judgement imposed fines between Rs 25,000 and Rs 5 lakh.

The regulator banned Kelvin Fincap Ltd (KFL) and 43 other associated firms from the securities markets in an ex-parte ad interim ruling dated August 14, 2014, and also prohibited the company from raising any money directly or indirectly.

Then, by ruling dated March 31, 2015, SEBI ended the legal action against the two firms.

The market watchdog then carried out a thorough examination into the subject pertaining to the trading actions of specific firms in the KFL scrip.

Three patches—Patch 1 (November 2011 to June 2013), Patch 2 (June 2013 to July 2013), and Patch 3—were used to perform the inquiry (June 2013 to May 2014).

The regulator discovered that seven noticees had sold tiny amounts of business stock during the patch 1 probe, contributing 90% of the market’s positive LTP (last traded price).

Additionally, during the Patch 3 investigation period, noticees 1 to 110 contributed 37.77% of the scrip’s market-positive LTP, according to a Thursday ruling from SEBI.

The regulator also discovered that 39 noticees had participated in the Patch 3 inquiry as both buyers and sellers of the scrip.

In the ruling, SEBI’s Adjudicating Officer Vijaykant Kumar Verma stated, “I note the precise position played by each of the entities, either as a seller or a buyer, while undertaking manipulative trades in the scrip of KFL, the amount of links enjoyed by them with the other related businesses.”

The PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations have so been violated by entities.

In another ruling, the regulator fined 16 organisations in a case involving fraudulent trading and other offences in the case of Wisec Global Ltd. for a total of Rs 1.02 crore.

The order was issued following a SEBI investigation into trading in Wisec Global Ltd (WGLstock )’s from September 2016 to June 2017.

In a different order, the regulatory body fined 14 firms a total of Rs 21 lakh for misusing IPO proceeds and other infractions in the case of Aster Silicates Ltd.

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