SEBI Imposes Fine of Rs 1.62 crore on 9 Entities for Indulging in Fraudulent Trading

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Paridhi Arya

Published on June 22, 2022 at 14:42 IST

Securities and Exchange Board of India (SEBI) the authority who regulates the Capital market of India has imposed fine to nine entities.

SEBI found some financial irregularities from April to July 2009 in trading of shares of Sterling Green Woods Ltd. (SGWL).

When SEBI did investigation the truth come out and nine entities collectively known as Hemang Shah Group was found indulge in fraudulent and unfair trading.

The SEBI issued order of levying fine of rupees 18 lakh to each entity. The order was challenged before the Securities Appellate Tribunal (SAT).

The appellants were heard and then SEBI was remanded by the Tribunal to pass fresh order on merits.

The SEBI filed order of 107 pages stating that Paksh Developer and Anurag Agarwal who is its director has given money and shares to Hemang Shah Group entities.

The Hemang Shah Group had created the artificial volume by buying and selling the share at the price higher than the actual and in 2009 when share reached at the highest price all the entities had sold it within a same month.

The entities have earned 54 lakh rupees by this method and violated the provisions of Prohibition of Fraudulent and Unfair Trade Practices (PFUTP).

SEBI had passed another order of levying fine of 37 lakh rupees on four individuals in the case of Resurgere Mines and Minerals India Ltd.for using the funds of IPO for other purpose then disclosed.

There are three more order issued by SEBI of imposing fine of rupees 10 lakh, 20 lakh and 10 lakh against two individuals in matter of Netlink Solutions (India) Ltd., Pentagon Stock Brokers Pvt. Ltd and Tamarind Capital Pte Ltd. respectively.

The Pentagon Stock Brokers Pvt. Ltd. has wrongly utilized the client’s securities. In matter of Netlink Solutions for non disclosure and against Tamarind Capital Pte Ltd for crossing the voting right limit and didn’t make the public offer.

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