Sebi slaps Rs 25 lakh fine on 3 entities for manipulating share price

Markets regulator Sebi Thursday slapped a total fine of Rs 2500000 on three entities for manipulating share price of Ponni Sugars (Erode) Limited The watchdog slapped penalties of Rs 1000000, Rs 500000 and Rs 1000000 on Gandiv Investment Private Limited Pat Financial Consultants Private Limited and Bharat J Patel, respectively, according to an order by the Securities and Exchange Board Of India (Sebi).The regulator from November 2012 to October 2014, conducted an investigation into the trading activities of the entities in four phases.During the probe, Sebi observed that the entities had frequently placed orders higher than LTP (Last Traded Price) in many instances as first trade of the day, such trades led to creation of an artificial rise in the price of the scrip In the normal course of trading, an investor tends to buy at a lower price and sell at a higher price. In this case, although sell orders were available in the system at a lower price, the entities placed buy orders at a higher price and the trade got executed at a higher price, Sebi noted.The actions of entities are in violation of PFUTP (Prohibition of Fraudulent and Unfair Trading Practices) regulations, Sebi said.Sebi revoked directions against Ritman Concrete Private Limited and Ritman Commercial Private Limited after the regulator found no adverse findings against them with respect to their role in misuse/misrepresentation in financial of Ritman Infra.In 2017, the regulator had prohibited promoters and directors of the firm from transferring their shares for sale as an interim measure pending the forensic audit of the firm.