Sebi slaps Rs 1.58 cr fine on 22 individuals for fraudulent trading activities

Markets regulator Sebi has slapped fines totalling Rs 1.580000000 on 22 individuals for indulging in fraudulent trading activities in the shares of Synergy Bizcon Limited The regulator has imposed penalties ranging from Rs 500000 to Rs 1500000.Securities and Exchange Board of India (Sebi) had conducted an investigation into the scrip of Synergy Bizcon during the May 26, 2015 to October 14, 2016 period.According to the watchdog, the individuals were connected to each other and had indulged in reversing their trades among themselves for the purpose of creation of artificial volume. It also created a false and misleading appearance of trading in the company's shares without the intention of change of actual beneficial ownership.Further, it was revealed that the individuals (noticees) while acting in tandem acted in manipulative manner to inflate the last traded price of the scrip and manipulated the price.The regulator also noted that some of the individuals by way of trading among themselves had contributed to the new high price of the scrip."... the trades of the noticees created misleading appearance of trading and contributed to increase in the scrip price of Synergy in a manipulative manner," Sebi said in an order passed on Tuesday.They violated provisions of Prohibition of Fraudulent and Unfair Trade Practices "By executing manipulative trades, as has been executed by the noticees in the instant matter, the price discovery system itself is affected. It also has an adverse impact on the fairness, integrity and transparency of the stock market," Sebi said while imposing the penalties.Separately, the watchdog slapped Rs 300000 fine on Silver Stallion Limited for violating takeover norms while dealing with the shares of Birla Pacific Medspa Limited BPML ).As per the order passed on Wednesday, Silver Stallion acquired 9.47% of the share capital of BPML which triggered the disclosure requirement under takeover norms, but it had failed to make the necessary disclosures.