Sebi imposes Rs 70 lakh fine on 10 entities for fraud trade

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NEW DELHI: Markets regulator Sebi on Thursday imposed a total penalty of Rs 70 lakh on 10 entities for indulging in manipulative trade in the shares of Shree Global Tradefin.

The Securities and Exchange Board of India (Sebi) had conducted an investigation into the company’s shares, listed on BSE, for the period April 2010 to January 2011 for possible violation of the regulatory norms.

The probe found that all 10 entities had indulged extensively as a group while executing match trades and some of these had executed repetitive self-trades as well as match trades.

By indulging in the manipulative trades, Sebi said the entities created a false and misleading appearance of trading in the scrip.

“I am of the view that the present case clearly brings out the role played by the entities, which is manipulative manner with an element of fraud and unfair trade practices,” Sebi Adjudicating Officer Sahil Malik said.