Sebi fines Rs 1.3-crore on 25 individuals for share price manipulation of Capri Global Capital

Capital markets regulator Sebi has imposed a penalty totalling Rs 1.3 crore on 25 individuals for indulging in volume and price manipulation in the shares of non-banking finance company Capri Global Capital Ltd (CGCL). 

They have been directed to pay the fine within 45 days, the Securities and Exchange Board of India (Sebi) said in its order.

The regulator investigated the trading pattern in the scrip of CGCL for the period August 2019 to June 2020 to ascertain whether there was any violation of the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) by these 25 entities.

During the investigation period, a group of 25 entities -- connected based on the Unique Client Code details, Know Your Client (KYC) documents and bank transactions -- were involved in volume manipulation in the scrip of CGCL by executing synchronized trades and reversal trades without changing the beneficial ownership of such shares, Sebi noted.

In this case, 24 individuals acting as group entities caused price and volume manipulation in the scrip of CGCL by executing fraudulent trades and notice no 26 (Vijay Ghyanshambhai Pujara) transferred funds into their accounts and subsequently placed trades from their trading accounts to cause manipulation in the scrip of CGCL, Sebi said in its order passed on Monday.

By indulging in such acts, they violated the provisions of PFUTP Regulations and accordingly, the regulator levied a fine of Rs 5 lakh each on 24 individuals and Rs 10 lakh on the remaining one.