15 people were fined Rs. 87 lakh by Sebi for manipulating the share price of Kapil Raj Finance
Sebi, the authority over capital markets, fined 15 people a total of Rs 87 lakh on Friday for manipulating the share price of Kapil Raj Finance. The trading actions of a few companies in the scrip of Kapil Raj Finance Ltd (KRJFL), a company listed on the BSE, were under investigation by the Securities and Exchange Board of India (Sebi).
The primary goal of the inquiry was to determine if any trade by the accused companies during the months of January through April 2018 really occurred.
“I note that they (individuals) engaged in circular trading without changing of beneficial ownership, contributing to nearly 80% of circular trading volume, and thereby creating 22.24% of trading volume, which was non-genuine and artificial, which created a misleading appearance of trading,” said Sebi’s Adjudicating Officer G Ramar.
These persons have broken the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules by engaging in such behavior.
As a result, Divyaben Hiteshbhai Gangani and Pardhi Dhirubhai Khanabhai were each fined Rs. 8 lakh by Sebi, while Bhavin Natwarlal Panchal, Deepak Parsharam Salvi, and Ravikumar Vinodbhai Parmar were each fined Rs. 7 lakh.
Additionally, Nikhil Kiritbhai Panchal, Naileshkumar Ganeshbhai Prajapati, Jay Kamleshbhai Bhavsar, Krunal Bhupendrabhai Makwana, Nilesh Kishanbhai Pandya, and Chandakant Sevantilal Thakkar were each fined Rs. 5 lakh by the markets regulator. The agency also imposed sanctions on Dashrathbhai Maheshbhai Vada, Manjulaben Bhaveshkumar Rangee, Bhumikaben Makvana Bhumikaben, and Dineshbhai Vaghela.
Sebi fined Vyomesh Patel, Yogendra Bhupendra Vekaria, Vipul Pushpavadan Shah, and Vinay Madhukar Chavan a total of Rs 5 lakh apiece on Thursday for engaging in non-genuine transactions in the BSE’s illiquid stock options market.
The regulator saw a significant amount of deals being reversed in the BSE’s illiquid stock options market, which caused fictitious volumes to be created on the exchange.
The regulator said in the ruling that it looked into the trading activity of a few businesses involved in the category on the BSE from April 2014 to September 2015.
