INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Markets regulator Sebi Thursday slapped a fine of Rs 77 lakh on Mridul Securities for indulging in fraudulent trade practices in
the scrips of Pressman Advertising.
The regulator conducted an investigation from April to August 2013 regarding trading in shares of the
company.
Sebi observed that the firm was part of a group of 29 entities that engaged in reversal trades through a combination of on-market
and off-market transactions that led to artificial volume, thereby creating a false and misleading appearance of trading in the
scrips.
However, Sebi added that out of the total 29 entities, adjudication proceedings have been disposed of under the settlement provision
in respect of 15 entities.
On Wednesday, the regulator fined five entities a total of Rs 40 lakh in the same matter.
"Noticee along with the
group entities indulged in reversal of trades, thereby created artificial volumes and misleading appearance of trading, and entered into
transactions without any intention of change of beneficial ownership of such security," Sebi noted in an order.
By doing so, the firm
violated provisions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.
Accordingly, the Securities and
Exchange Board of India (Sebi) fined Mridul Securities Pvt Ltd Rs 77 lakh.
In a separate order on Wednesday, Sebi imposed a penalty of Rs 10
lakh on Finelink Suppliers Pvt Ltd, presently known as Stream Suppliers, for executing fraudulent trades which led to creation of artificial
volume in the illiquid stock option segment on the BSE.
In April, the regulator had announced taking action in a phased manner against
14,720 entities for fraudulent trade in the illiquid stock option segment and has passed several orders in the past few weeks against such
