SEBI slaps Rs 42-lakh penalty on 14 individuals for manipulative trade in shares of Kushal Tradelink

Markets regulator SEBI has slapped a total fine of Rs 4200000 on 14 individuals for executing fraudulent trade in shares of Kushal Tradelink Limited (KTL). The 14 individuals were fined Rs 300000 each, totalling Rs 4200000, according to a SEBI order. The Securities and Exchange Board of India (SEBI) had conducted a probe from September to December, 2016 in the trading of KTL's shares. During the probe, the regulator found that the individuals were connected to each other, traded among themselves and manipulated the share price of the KTL. "It is established that noticees (14 individuals) had contributed to manipulation in the scrip price of KTL, besides trading among themselves and indulging in synchronized and reversal trades, which are manipulative/unfair/fraudulent in nature," Sebi said in an order dated May 31. They violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, SEBI said, making them liable for monetary penalty. By doing so, the entities violated PFUTP regulations, SEBI said. Accordingly, a fine of Rs 500000 each was imposed on the three entities.