Markets regulator Sebi Wednesday imposed a fine totalling Rs 40 lakh on five entities for engaging in fraudulent trade in the shares of Pressman Advertising Ltd.
The regulator conducted an investigation from April to August 2013 regarding the trading in the shares of the firm.
During the probe, Sebi found that the entities who were part of a group executed reversal trades through a combination of on-market and off-market transactions which led to artificial volume, thereby creating a false and misleading appearance of trading in the scrips.
The act of creating artificial volume by the entities violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, Sebi said.
In five separate but similarly-worded orders, the regulator said the entities along with the group had created artificial volume by way of reversal of trades and without change in beneficial ownership and thus are liable for monetary penalty.
Accordingly, the Securities and Exchange Board of India (Sebi) fined Shree Aeran Marketing Pvt Ltd Rs 24 lakh, while Rekha Mishra and Vivek Sharma were fined Rs 4 lakh each, Varun Agarwal HUF and Ranjana Agarwal were fined Rs 7 lakh and Rs 1 lakh, respectively.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)