Sebi penalises 10 entities for manipulating Millitoons Entertainments stock prices
The regulator imposed fines in the range of Rs 5-10 lakh on Preyashbhai Sathvara, Sejalben Prayashkumar Sathvara, Suresh Ramanlal Prajapati, Dharmeshbhai J Vaghela, Vijay Madhusudanbhai Koshti.
Capital markets regulator Sebi on Thursday levied fines totalling Rs 85 lakh on 10 entities for manipulating the share price of Millitoons Entertainment Ltd (MEL).
The regulator imposed fines in the range of Rs 5-10 lakh on Preyashbhai Sathvara, Sejalben Prayashkumar Sathvara, Suresh Ramanlal Prajapati, Dharmeshbhai J Vaghela, Vijay Madhusudanbhai Koshti.
Parmar Mukeshkumar, Mehulkumar Balvantbhai Tundiya, Harishkumar Sakariya, Rekhaben Harishbhai Sakariya and Mobonair Wireless were also fined by the market watchdog.
The order came after Sebi carried out an investigation in the scrip of Millitoons Entertainment Ltd (now known as Colorchips New Media Ltd) during March-April 2018.
The regulator found that Preyashbhai, Sejalben, Prajapati, Vaghela, Koshti, Mukeshkumar, Tundiya, Harishkumar and Rekhaben executed 97 synchronised trades which contributed 21.63 per cent of the market volume in the scrip of MEL at BSE. The trades were conducted during the investigation period and were repetitive in nature, further contributed Rs 2.35 to net last traded price (LTP).
Click here to get more updates on Stock Market I Zee Business Live
They repeatedly entered into synchronised trades thereby created a misleading appearance of trading in the shares of the firm at BSE without any intention of change of ownership, thereby violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, the Securities and Exchange Board of India (Sebi) said in the order.
In addition, the regulator also observed that it had issued summons to Preyashbhai, Sejalben, Suresh, Dharmeshbhai, Vijay, Parmar, Mehulkumar and Moboair to provide information to the investigating authority.
However, they failed to comply with the summons and also failed to furnish requisite information which hampered the investigation.
Meanwhile, in a separate order, the regulator slapped a fine of Rs 24 lakh on two entities for failing to make public announcement related to the acquisition of shares of Onesource Ideas Venture Ltd.
The fine has to be paid jointly and severally.
In another order, Sebi imposed fines totalling Rs 15 lakh on 5 entities for flouting regulatory norms in the matter of Ejecta Marketing Ltd.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.