Markets regulator Sebi on Wednesday imposed a fine of Rs 1.30 crore on JLG Securities and seven individuals for fraudulent trading in the scrip of Regency Hospital.
The regulator conducted a probe in the trading of shares of Regency Hospital between April 2011 and September 2011 after it observed that "prima facie there appeared to be creation of artificial volume in the scrip of the company and influence on price in the scrip of the company."
During the probe, Sebi found that the entities executed synchronised trades, reversal trades and self-trades among themselves resulting in artificial volumes.
"The noticees have also executed reversal trades resulting in no change of beneficial ownership and thus, created artificial volume in the scrip and gave false and misleading appearance of trading in the scrip and thus, the self-trades are seen in the context of the role played by the noticees...are being considered as manipulative with perverse intention," Sebi said.
The trades of the ...
