Sebi fines individual in SKS Logistics case
Markets regulator Sebi today imposed a Rs 3.5 lakh penalty on an individual for fraud trading in the shares of SKS Logistics.
The Securities and Exchange Board of India (Sebi) had conducted an investigation in the scrip of the company during the period June 2004 to October 2004.
In an order, the regulator said that Sunil Purohit along with certain other entities "has created artificial volume in the market by executing synchronised trades and circular trades thereby created false and misleading appearance on the market and entered transaction in securities (of SKS Logistics) without intention of performing it or without intention of change of ownership of such shares".
Purohit has violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, Sebi said.
In September 2004, Sunil Purohit sold 3,000 shares at Rs 37.25 to S P J Stock Broker Pvt Limited and same 3,000 shares were circulated among the Purohit, PJ Chaudhary and SP J Stock Broker Pvt Limited. Similar transaction were entered on the thirteen different days and 50,000 shares were traded in similar fashion.
Securities Appellate Tribunal(SAT) in March 2016 had set aside the Sebi order in April 2012 and directed to pass a fresh ruling.
A fresh order was passed against Purohit and a Rs 3.5 lakh fine imposed on him.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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