SEBI levies Rs 28 lakh fine on 7 firms for fraudulent trading in Kailash Auto Finance scrip

Capital markets regulator SEBI has slapped a total fine of Rs 2800000 on seven firms for carrying out fraudulent trading in the scrip of Kailash Auto Finance Limited Bholebaba Suppliers Private Limited Akriti Advisory Services Private Limited Sarvottam Advisory Private Limited Eversafe Promoters Private Limited Overall Vincom Private Limited Subhankar Exim Private Limited and Supernova Advertising Private Limited are the firms facing penalty. The order follows an investigation carried out by SEBI in the scrip of Kailash Auto Finance Limited (KAFL) during January 2013 to December 2015 after the watchdog noticed unusual price and volume movement in the shares of the company. SEBI noted that the firms had created a misleading appearance of trading in the scrip and manipulated the price of the scrip and thereby violated provisions of the Prohibition of Fraudulent and Unfair Trade Practices norms. "...Noticees had no genuine intention to sell the shares and the sell trades were executed in a fraudulent manner with a view to create misleading appearance of trading in scrip at higher prices and thereby manipulating the price of KAFL scrip," SEBI said in an order dated September 30. Consequently, penalties in the range of Rs 100000 to Rs 700000 have been levied on the firms. In another order on September 30, SEBI imposed a fine of Rs 1600000 on promoter of Pawansut Holdings Limited -- Meera Mishra -- for failing to make requisite disclosures regarding her shareholding in the company. SEBI observed that Mishra's shareholding in the firm had changed on various instances between June 2013 and September 2014 which triggered mandatory disclosures to be made under relevant market norms. However, Meera Mishra failed to do so. "..by not making all the required disclosures, the Noticee failed to comply with their mandatory statutory obligation," SEBI noted.