The Sebi order follows an investigation carried out between March 2015 and September 2016.
The probe found that three entities created misleading appearance of trading in Pincon’s scrip and established its equilibrium price in a manipulative manner during special pre-open session (SPOS) on the Metropolitan Stock Exchange of India in February 2015. The other four entities indulged in similar practices during SPOS on the BSE in March 2015, the probe found.
They violated the Prohibition of Fraudulent and Unfair Trade Practices, Sebi noted in an order.
Therefore, the entities — Ashok Sharma, Sailesh Jha, Ecospace Infotech Pvt Ltd, Pincers Commodities Pvt Ltd, Cheroot Vanijya Pvt Ltd, Darswana Vinimay Pvt Ltd and Goldensight Commotrade Pvt Ltd — are facing a fine of Rs 5 lakh each.
According to a separate order, Sebi levied monetary penalty on eight individuals for not complying with the summons sent by the regulator.
Sebi had served summons to the entities to find the extent of involvement of the entities in the trading and manipulation of price or volume in the scrips of , KGN Enterprise Ltd and Polytex India Ltd.
The summons were also served in order to find the role of suspected entities and ascertain the arrangement for fund movement which was used for the purpose of trading in the three scrips.
Earlier, the regulator had barred these entities from accessing securities market till further directions, through an interim order based on preliminary findings.
In view of failure to comply with the summons issued by Sebi, the individuals are facing monetary fine of Rs 2 lakh each.
As per separate orders, Bright Buildtech Pvt Ltd, Rajasthan State Road
and Maharashtra Patbandhare Vittiya Company Ltd (erstwhile SICOM Ltd) are facing fine for failing to submit the financial results within the stipulated time, in violation of the Listing Obligations and Disclosure Requirements norms.
Regarding the Maharashtra Patbandhare Vittiya Company, Sebi said, “the Noticee is a state government company, and thus carries greater onus in ensuring compliance with regulatory requirements.”
It failed to comply with the disclosure requirements repeatedly for eight half-yearly reporting compliances since March 2016, Sebi noted.
The firm is facing a fine of Rs 4 lakh, while Sebi has imposed a fine of Rs 1 lakh each on the other two companies.