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Sebi Imposes Total Rs 1.05 Cr Fine on 21 Entities in Jolly Plastic Industries Case

In this file photo, the logo of the Securities and Exchange Board of India (SEBI) is pictured on the premises of its headquarters in Mumbai. (Reuters)

In this file photograph, the emblem of the Securities and Exchange Board of India (SEBI) is pictured on the premises of its headquarters in Mumbai. (Reuters)

Sebi has imposed a complete penalty of Rs 1.05 crore on 21 entities for executing fraudulent buying and selling within the scrip of Jolly Plastic Industries Ltd.

  • PTI
  • Last Updated: May 3, 2020, 12:56 PM IST

Sebi has imposed a complete penalty of Rs 1.05 crore on 21 entities for executing fraudulent buying and selling within the scrip of Jolly Plastic Industries Ltd.

The regulator had performed an investigation within the scrip of Jolly Plastic Industries Ltd between February 2012 and November 2014.

During the probe, it was discovered that these entities have been linked to one another and indulged in manipulating the worth of the scrip downwards by a fancy internet of accumulating and distributing shares within the off-market.

Thereafter, executing market transactions amongst themselves at decrease circuit filters value to be able to deliver down the worth to facilitate sure entities to amass shares at lower cost for varied manipulative functions.

Besides, they contributed to detrimental LTP (final buying and selling value) by executing trades at decrease circuit value day by day.

The entities by buying and selling amongst themselves beneath the LTP within the scrip manipulated and created a deceptive look of buying and selling within the scrip by such commerce, the regulator famous.

Hence, the entities by indulging in fraudulent commerce practices have violated the provisions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.

The regulator has levied a effective of Rs 5 lakh every on 21 entities — Aavia Buildtech, Aavia Softech, Accurate Buildwell, Aglow Financial Services, Anchal Goel , Ashok Kumar Jain HUF, Ashvin Verma, Bluechip Fincap Serve, Capital Securities, Century Buildmart, Lalit Mohan Gupta , Laxmikant Gaggar, Kanchan Bastimal Jain, Mould Trading, Ocean Share Brokers, Poonam Mittal, Ram Kumar Goyal, Steady Capital Advisory Services, Sure Portfolio Services, Surya Medi Tech, and Usha Jaiswal.

In a separate order, Sebi has imposed a effective of Rs 5 lakh on Sapna Dilip Bombaywala for fraudulent buying and selling within the matter of Jolly Plastic Industries Ltd (JPIL).

Separately, the regulator has imposed a penalty totalling Rs 15 lakh on auditor M V Damania & Co (at present referred to as DNV & Co) and its associate Bharat Jain for wrongly certifying that Paramount Printpackaging utilised the IPO proceeds as per the objects of the difficulty.

They indulged in fraudulent commerce observe by publishing such info that’s not true and indulged in deceptive commercial in addition to planted deceptive information.

By doing so, they’ve violated the provisions of PFUTP norms. Also, in one other separate order, the regulator has levied a effective of Rs 5 lakh on Shashikant Keshavlal Shah for fraudulent buying and selling within the matter of Well Pack Papers & Containers Ltd.

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