Markets regulator Sebi Thursday slapped a penalty of over Rs 1 crore on 11 entities for fraudulent and manipulative trading in the shares of Emed.com Technologies.
The regulator had conducted investigation from August 2013 to June 2014 regarding the trading in the scrips of Emed.com Technologies.
During the probe, Sebi found that the entities were connected to each other and had executed circular trades wherein they transferred shares in off-market to certain entities and then purchased back those shares in on-market, thereby giving misleading appearance of trading.
Besides, they contributed to positive last traded price (LTP) and establishing of new high price (NHP) in the scrip, the Securities and Exchange Board of India (Sebi) said.
"The group entities have contributed to the creation of artificial volumes and inflated/ manipulated the price of the scrip and thus violated…PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations," the regulator noted.
Accordingly, Sebi imposed a fine of Rs 10 lakh each on nine entities, including Pummy Garments Pvt Ltd, Sure Portfolio Services, Steady Capital Advisory Services, and SupremRead More – Source