Platinum Corp to pay Rs 4.5 cr fine: Sebi

Market regulator today imposed a total penalty of Rs 4.50000000 on three promoters of Platinum Corporation Limited (PCL) over alleged trading irregularities in the shares of the company. Sebi (Securities and Exchange Board of India) has slapped a fine of Rs 1.50000000 each on Jayesh Shah,Parag Shah and Tushar Shah. “...impose a penalty of Rs 1.50000000 each on Jayesh Shah,Parag Shah and Tushar Shah and thus a total of Rs 4.50000000 for violation of provisions (of Sebi’s )...Prohibition of Fraudulent and Unfair Trade Regulations,” the regulator said. Sebi in its investigation revealed that PCL had allegedly made certain false,misleading corporate announcements,subsequently,the company’s share price jumped by 107% during July- September 2005. “Such announcements created artificial demand for the stock and at the same time Jayesh Shah,Parag Shah and Tushar Shah who were the promoters of PCL transferred shares of PCL to the persons connected to them and also pooled up shares from various persons and ensured to dump shares in the market,” the regulator said. “It is alleged that such price sensitive and misleading announcements were made by the PCL to induce trading and to increase /influence price and volume of the scrip,” it added. The daily average volumes during July-September 2005 were 17.9800000 shares an increase of 1,272% of average trading volumes prior to the announcement. “It is also alleged that pursuant to the said corporate announcement made by PCL the noticees (Jayesh Shah,Parag Shah and Tushar Shah) in collusions with the other connected entities off-loaded their shares at such artificially risen price and made unlawful gains,” Sebi noted. Sebi said three promoters might have profited Rs 8000000 each by offloading 4000000 shares each to the investors through their fraudulent and manipulative conduct. Last week,Sebi had imposed a total fine of Rs 10.5000000 on these promoters for violating various norms,including those related to insider trading in acquiring shares.