Sebi levies fine Rs 1.75 cr on several entities in Vakrangee case

NEW DELHI: Markets regulator Sebi on Monday imposed a total fine of Rs 1.75 crore on several entities for indulging in fraudulent trading in the scrip of Vakrangee Ltd.

The entities have violated Prohibition of Fraudulent and Unfair Trade Practices norms, Sebi said in three separate orders.

The investigation periods vary between January 2015 and September 2015, September 2015 and June 2016 and September 2016 and June 2017.

The probe found that the connected entities traded in the scrip of Vakrangee and created a misleading appearance of trading in the scrip without any intention of change in ownership of the security, by entering into synchronized trades at the relevant times.

Trades among the entities were not genuine and were executed with manipulative intent. They were a part of fraudulent scheme and the synchronized trades have created misleading appearance of trading in the scrip of the company, Sebi said.

Synchronization of trades in pre-determined manner had an adverse impact on the fairness, integrity and transparency in the securities market, Sebi said in similarly worded separate orders.

As per two orders, a group of 22 connected entities and a group of 16 entities face a fine of Rs 50 lakh each and another order has imposed a fine of Rs 75 lakh on the connected group of 27 entities. Most of the entities in these groups are same.

These include Cybernetix Automation, Newtree Trading Company, Odathi Trading, Seahorse Mercantile Company, Bluepearl Trading Company and Highpoint Trading Company, among others. The fine has to be paid jointly and severally by them.