Sebi disposes of adjudication proceedings against 6 entities after settlement

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Sebi disposes of adjudication proceedings against 6 entities after settlement


NEW DELHI: Market regulator Sebi on Thursday disposed of the adjudication proceedings against six entities after they settled cases related to alleged fraudulent trading activities in illiquid stock options segment on BSE.

The entities, including one individual, are Panem Steel Pvt Ltd, Phoenix Asset Management Pvt Ltd, Polylace India Pvt Ltd, Pristine Capital Consultants Pvt Ltd, Priyasha Meven Finance Ltd and Priti Devi.

According to six separate orders, the entities had allegedly indulged in non-genuine trades and created a false and misleading appearance of trading in the stock options segment of BSE.

Thereafter, the regulator initiated adjudication proceedings and issued show-cause notices to them for alleged violation of provisions of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.

The entities had submitted applications for settlement.

Sebi in January this year had passed a settlement order under its settlement scheme in respect of 1,018 entities, including Panem Steel, Phoenix Asset Management, Polylace India, Pristine Capital Consultants, Priyasha Meven Finance and Priti Devi.Subsequently, settlement charges of Rs 19.37 lakh, Rs 11.62 lakh and Rs 25.57 lakh have been paid by Panem Steel, Phoenix Asset Management and Polylace India respectively.

Besides, Pristine Capital Consultants, Priti Devi and Priyasha Meven Finance have paid settlement amounts of Rs 22.47 lakh, Rs 30.22 lakh and Rs 20.92 lakh respectively.

Accordingly, Sebi disposed of the adjudication proceedings initiated against them.Separately, the watchdog levied a penalty of Rs 5 lakh each on Sushma Chaudhary and Prerna Chaudhary for indulging in fraudulent trading activities in shares of Malabar Trading Company Ltd (MTCL).

A Sebi probe found that the individuals had manipulated the price of the scrip of MTCL and created a misleading appearance of trading in the scrip by trading in the minimum lot above LTP (last traded price), which are not trades executed in the normal course of trading and investment in securities market.

They have deliberately manipulated the price of the scrip and created a misleading appearance of trading in the scrip to induce innocent investors in the securities market thereby contravening the provisions of Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, Sebi said in an order.

According to another order passed on Wednesday, the regulator imposed a fine of Rs 2 lakh on Sarang Chemicals Ltd for non-redressal of pending grievances of investors to Sebi within the prescribed period of time.

Also, it had failed to submit its Action Taken Report with respect to the same.





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