{"id":245173,"date":"2021-03-08T09:07:32","date_gmt":"2021-03-08T03:37:32","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=245173"},"modified":"2021-03-08T09:08:02","modified_gmt":"2021-03-08T03:38:02","slug":"fraudulent-trading-practices","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/","title":{"rendered":"SEBI | SEBI pulls up entities for fraudulent trading practices: Imposes \u20b9 80 lakh fine"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Securities and Exchange Board of India (SEBI)<\/strong>: Maninder Cheema, Adjudicating Officer, imposed a total fine of Rs 80 lakh on eight entities for indulging in fraudulent trading activities in the shares of PMC Fincorp Ltd.<\/p>\n<p style=\"text-align: justify;\">It was found by the regulator, that the entities created artificial demand in the PMC shares by continuously buying shares at increasing prices and then holding on to the shares purchased by them, thereby also reducing the shares held by the public.<\/p>\n<p style=\"text-align: justify;\">The trades of the entities during the investigation period were found to be manipulative in nature, leading to an artificial price rise with the motive to provide exit to large shareholders who sold their shares at artificially inflated prices.<\/p>\n<p style=\"text-align: justify;\">It was of the opinion that, <em>\u201cthe fundamentals of the company did not justify the high prices and no prudent investor would continue buying at increasing prices unless motivated by some other consideration. The fact that the Noticees 1 to 8 were connected as established above leads one to conclude that the demand for shares was artificially created with a\u00a0 view to causing an artificial increase in price.\u00a0 The\u00a0 Noticees purchased and continued to hold the shares, while at the same time buying at increasingly higher prices,\u00a0 thus inducing an upward movement in price\u201d.<\/em><\/p>\n<p style=\"text-align: justify;\">It further found that Noticees 1 to 8 created an artificial demand in the scrip of\u00a0 PMC\u00a0 during the\u00a0 IP by continuously buying shares at increasing prices and then holding on to the shares purchased by them, thereby also reducing the shares held by the public. And further noted the fall in the price of the scrip after the sustained buying.<\/p>\n<p style=\"text-align: justify;\">Noticees 1 to 8 through their trading in the scrip manipulated the price of PMC in violation of Section 12A (a), (b), (c) of SEBI Act read with Regulation 3 (a), (b), (c), (d), 4 (1) and 4 (2) (a), (e) of PFUTP Regulations. And therefore, were liable for monetary penalty under Section 15HA of the SEBI Act. A\u00a0 penalty\u00a0 Rs 10,00,000\/-(Rupees Ten Lakh only) each on Noticees 1 to 8i.e.Economy Suppliers Private Limited\u00a0 (Noticee\u00a0 1), Embassy Sales Private Limited\u00a0 (Noticee\u00a0 2), Seabird Distributors Private Limited (Noticee 3), Seabird Vincon Private Limited (Noticee 4),\u00a0 Seabird Retails Private Limited (Noticee 5), Shivdarshan\u00a0 Sales\u00a0 Private Limited (Noticee 6), Famous Investment Consultants (Noticee\u00a0 7)\u00a0 and\u00a0 Rolex Vinimay Private Limited\u00a0 (Noticee 8) (Total penalty of Rs.80,00,000\/-(Rupees EightyLakh only) was imposed.[PMC Fincorp Ltd., In re, ADJUDICATION ORDER NO. Order\/MC\/HP\/2020-2021\/10676-10683, decided on 26-02-2021]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Securities and Exchange Board of India (SEBI): Maninder Cheema, Adjudicating Officer, imposed a total fine of Rs 80 lakh on eight entities <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[45397,29785,45398,32601],"class_list":["post-245173","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-fraudulent-trading-practices","tag-law","tag-manipulative","tag-shares"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>SEBI | SEBI pulls up entities for fraudulent trading practices: Imposes \u20b9 80 lakh fine | SCC Times<\/title>\n<meta name=\"description\" content=\"Fraudulent Trading Practices\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEBI | SEBI pulls up entities for fraudulent trading practices: Imposes \u20b9 80 lakh fine\" \/>\n<meta property=\"og:description\" content=\"Fraudulent Trading Practices\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/\" \/>\n<meta property=\"og:site_name\" content=\"SCC Times\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/scc.online\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-08T03:37:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-03-08T03:38:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/03\/security-exchange-board-of-india.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1330\" \/>\n\t<meta property=\"og:image:height\" content=\"887\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Editor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Editor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2021\\\/03\\\/08\\\/fraudulent-trading-practices\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2021\\\/03\\\/08\\\/fraudulent-trading-practices\\\/\"},\"author\":{\"name\":\"Editor\",\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/#\\\/schema\\\/person\\\/84e42bab48238baf12c7e33b3d9761fe\"},\"headline\":\"SEBI | SEBI pulls up entities for fraudulent trading practices: Imposes \u20b9 80 lakh fine\",\"datePublished\":\"2021-03-08T03:37:32+00:00\",\"dateModified\":\"2021-03-08T03:38:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2021\\\/03\\\/08\\\/fraudulent-trading-practices\\\/\"},\"wordCount\":410,\"commentCount\":0,\"keywords\":[\"Fraudulent Trading Practices\",\"law\",\"Manipulative\",\"Shares\"],\"articleSection\":[\"Case Briefs\",\"Tribunals\\\/Commissions\\\/Regulatory Bodies\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2021\\\/03\\\/08\\\/fraudulent-trading-practices\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2021\\\/03\\\/08\\\/fraudulent-trading-practices\\\/\",\"url\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2021\\\/03\\\/08\\\/fraudulent-trading-practices\\\/\",\"name\":\"SEBI | SEBI pulls up entities for fraudulent trading practices: Imposes \u20b9 80 lakh fine | SCC Times\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/#website\"},\"datePublished\":\"2021-03-08T03:37:32+00:00\",\"dateModified\":\"2021-03-08T03:38:02+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/#\\\/schema\\\/person\\\/84e42bab48238baf12c7e33b3d9761fe\"},\"description\":\"Fraudulent Trading Practices\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2021\\\/03\\\/08\\\/fraudulent-trading-practices\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2021\\\/03\\\/08\\\/fraudulent-trading-practices\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2021\\\/03\\\/08\\\/fraudulent-trading-practices\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"SEBI | SEBI pulls up entities for fraudulent trading practices: Imposes \u20b9 80 lakh fine\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/\",\"name\":\"SCC Times\",\"description\":\"Bringing you the Best Analytical Legal News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/#\\\/schema\\\/person\\\/84e42bab48238baf12c7e33b3d9761fe\",\"name\":\"Editor\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/34e366be721c41333586de05faa13743195f5b142dcd7a015c6fabd2389521d0?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/34e366be721c41333586de05faa13743195f5b142dcd7a015c6fabd2389521d0?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/34e366be721c41333586de05faa13743195f5b142dcd7a015c6fabd2389521d0?s=96&d=mm&r=g\",\"caption\":\"Editor\"},\"url\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/author\\\/editor_4\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"SEBI | SEBI pulls up entities for fraudulent trading practices: Imposes \u20b9 80 lakh fine | SCC Times","description":"Fraudulent Trading Practices","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/","og_locale":"en_US","og_type":"article","og_title":"SEBI | SEBI pulls up entities for fraudulent trading practices: Imposes \u20b9 80 lakh fine","og_description":"Fraudulent Trading Practices","og_url":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/","og_site_name":"SCC Times","article_publisher":"https:\/\/www.facebook.com\/scc.online\/","article_published_time":"2021-03-08T03:37:32+00:00","article_modified_time":"2021-03-08T03:38:02+00:00","og_image":[{"width":1330,"height":887,"url":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/03\/security-exchange-board-of-india.jpg","type":"image\/jpeg"}],"author":"Editor","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Editor","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/#article","isPartOf":{"@id":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/"},"author":{"name":"Editor","@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/84e42bab48238baf12c7e33b3d9761fe"},"headline":"SEBI | SEBI pulls up entities for fraudulent trading practices: Imposes \u20b9 80 lakh fine","datePublished":"2021-03-08T03:37:32+00:00","dateModified":"2021-03-08T03:38:02+00:00","mainEntityOfPage":{"@id":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/"},"wordCount":410,"commentCount":0,"keywords":["Fraudulent Trading Practices","law","Manipulative","Shares"],"articleSection":["Case Briefs","Tribunals\/Commissions\/Regulatory Bodies"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/","url":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/","name":"SEBI | SEBI pulls up entities for fraudulent trading practices: Imposes \u20b9 80 lakh fine | SCC Times","isPartOf":{"@id":"https:\/\/www.scconline.com\/blog\/#website"},"datePublished":"2021-03-08T03:37:32+00:00","dateModified":"2021-03-08T03:38:02+00:00","author":{"@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/84e42bab48238baf12c7e33b3d9761fe"},"description":"Fraudulent Trading Practices","breadcrumb":{"@id":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/08\/fraudulent-trading-practices\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.scconline.com\/blog\/"},{"@type":"ListItem","position":2,"name":"SEBI | SEBI pulls up entities for fraudulent trading practices: Imposes \u20b9 80 lakh fine"}]},{"@type":"WebSite","@id":"https:\/\/www.scconline.com\/blog\/#website","url":"https:\/\/www.scconline.com\/blog\/","name":"SCC Times","description":"Bringing you the Best Analytical Legal News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.scconline.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/84e42bab48238baf12c7e33b3d9761fe","name":"Editor","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/34e366be721c41333586de05faa13743195f5b142dcd7a015c6fabd2389521d0?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/34e366be721c41333586de05faa13743195f5b142dcd7a015c6fabd2389521d0?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/34e366be721c41333586de05faa13743195f5b142dcd7a015c6fabd2389521d0?s=96&d=mm&r=g","caption":"Editor"},"url":"https:\/\/www.scconline.com\/blog\/post\/author\/editor_4\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/245173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=245173"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/245173\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=245173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=245173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=245173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}