Sebi slaps Rs 4.5 crore fine on nine entities in Sanwaria Agro case

Market regulator Sebi today slapped a total fine of Rs 4.50000000 on nine entities for alleged fraudulent and unfair trade practices in the shares of Sanwaria Agro Oils Limited The regulator imposed a penalty of Rs 10000000 each on Sanwaria Agro Oils, Anil Agrawal and Rajesh Kumar and another Rs 2500000 each on six Uni Group firms for violation of Sebi's Prohibition of Fraudulent and Unfair Trade Practices regulations.The Securities and Exchange Board of India (Sebi), which carried out a probe into dealings in shares of Sanwaria Agro Oils Limited (SAOL) during February 1, 2009, to February 26, 2010, found a high volatility in the company's share price.The investigation had revealed that SAOL, in which Anil Agrawal was a Whole Time Director, had allegedly transferred money to certain Uni Group companies that were controlled by Agrawal and Rajesh Kapoor.The Uni group, in turn, allegedly transferred money to Kapoor who placed orders at higher prices than the last trading price and had significantly impacted the company's share price during the investigation period."Therefore, I conclude that Agrawal and Kapoor are connected entities, shareholders and in control of Uni group of entities which are connected with SAOL through the Whole time director of SAOL, Agrawal," Sebi Adjudicating Officer D Sura Reddy said in the order.The Uni group of entities have transferred and received shares of SAOL from Kapoor through off market during the investigation period."That Uni group of entities received money of over Rs 2.450000000 from SAOL. That the Uni group of entities, for whom Agrawal is the authorised signatory, had made payments of more than Rs 70000000 to Kapoor which was used by him for the trading purposes in the market and proceeds were also remitted to Uni group," Sebi noted."Kapoor, through the money funded by SAOL and Uni group entities, had traded in large volumes in the scrip creating momentum/ breathe in the scrip and has also manipulated the price of the scrip, thereby misleading investors and committed a fraud on genuine investors," it added.