Sebi imposes Rs 5 lakh fine on an entity for fraudulent trading activities

Capital markets regulator Sebi on Thursday imposed a penalty of Rs 500000 on H Bhavesh Securities and Commodities Private Limited (HBSPL) for indulging in manipulative trading activities.In February, the watchdog had restrained 39 entities from accessing the securities market and prohibited them from buying, selling or dealing in securities in any manner.An investigation was conducted into five scrips -- Spectacle Infotek Limited , LGS Global Limited Goldstone Technologies Limited Gemstone Investments Limited and Well Pack Papers and Containers Limited It was found that few entities along with the 39 entities indulged in manipulation of these scrips. HBSPL (noticee) was one of the entities that had transferred shares to various entities through off-market transfers in five scrips.These entities were found to have created artificial volume in these scrips and, thus, the act of the noticee was instrumental in creating artificial volume, Sebi said in an order on Thursday.Further, Sebi said the off-market transfers were made with manipulative intent which is further corroborated with the fact that majority of shares were transferred to directors of the noticee who subsequently used these shares for creation of artificial volumes in the market.HBSPL executed multiple off-market transfers with the group entities that helped them in creating artificial volume in the scrips of Spectacle, LGS, Goldstone, Gemstone and Wellpack during the respective periods of investigation, the order noted.Such act of aiding and abetting manipulative trades is certainly in the nature of causing adverse impact in disturbing the equilibrium of fair market mechanism, Sebi's Adjudicating Officer B J Dilip said in the order. Sebi found that Sital Leasing and Finance failed to make required disclosures of inter-se transfer of shares between two promoters to the stock exchange.Separately, the watchdog imposed a penalty of Rs 100000 on individual, Kanchan Bihani, in the matter of Sanjivani Paranteral Limited for disclosure lapses.In an order passed on Wednesday, the Securities and Exchange Board of India (Sebi) imposed a fine of Rs 200000 on Anoop Kumar Garg over disclosure lapses in the matter of Centron Industrial Alliance Limited