Fraudulent trading: Sebi slaps fine of Rs 18 crore on 35 entities
Coming down heavily on fraudulent trade practices, markets regulator Sebi on Friday slapped a fine of over Rs 18 crore on 35 entities for indulging in circular trading and share price manipulation in the matter of Octant Interactive Technologies Ltd (OTIL), now known as Swarnajyothi Agrotech & Power.
"...it is a clear case of pump and dump wherein certain entities by trading among themselves had rigged the price, upon taking at greater height, dumped their shares and other entities slowly exited from the scrip by leaving other investors in severe losses," Sebi said while imposing fine on the entities.
The penalty imposed on entities ranges from Rs 25 lakh to Rs 3 crore.
The Securities and Exchange Board of India (Sebi) had conducted investigation into trading of OTIL's shares from January 2009 to September 2009.
Following the investigation, Sebi observed that the 35 entities were connected to each other and were hand in gloves with the brokers concerned in manipulating the shares .