Market regulator Sebi on Friday imposed penalties totaling Rs 25 lakh on two entities for engaging in manipulative trading activities in shares of Ponni Sugars Erode Ltd (PSEL).
A fine of Rs 15 lakh was imposed on Gandiv Investment Pvt Ltd and Rs 10 lakh on Pat Financial Consultants Pvt Ltd.
The order came after Sebi conducted an investigation into PSEL’s actions during the period from November 2012 to October 2014.
Three entities – Gandiv Investment, Pat Financial and an individual – were found to have engaged in stock price manipulation. The individual recently died.
In an order, Sebi said the entities flouted PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.
Separately, the watchdog fined one individual – Ajay Chauhan (owner of Drift Financial Services) – Rs 7 lakh for breaching the standards.
The individual had promised high returns to investors despite being fully aware that all investments made in the securities market are subject to market risk and such returns cannot be assured, according to the regulator.
By such acts, the individual has violated the PFUTP regulations and the provisions of the code of conduct for investment advisers.
In another order, the market regulator imposed a fine of Rs 5.50 lakh on Sykes and Ray Equities (I) Ltd for misuse of client securities.
The order came after Sebi, BSE and CDSL carried out a full inspection of Sykes and Ray Equities (I) Ltd in relation to its equity brokerage and crowdfunding business from February 4-9, 2019.
The period covered by the inspection was from April 2017 to January 2019.
Separately, Sebi imposed penalties totaling Rs 3 lakh on four entities – HDIL Infra Projects Ltd, Rakesh Wadhawan and Sarang Wadhawan and Broadcast Initiatives Ltd – for disclosure failures.
In another order, the regulator imposed a fine of Rs 10 lakh on Tirupati Fincorp Ltd for flouting PFUTP regulations.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)