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Sebi fines two individuals for not complying with summons in Videocon case

Sebi conducted an investigation between April 2017-September 2017 in the scrip of Videocon Industries for the possibility of insider trading and volume manipulation by certain entities

Topics
SEBI | Videocon Industries | Markets

Press Trust of India  |  New Delhi 

File photo: PTI
File photo: PTI

regulator on Wednesday levied a fine of Rs 5 lakh each on two individuals for failing to comply with the summons issued by the authority in a matter pertaining to violation of market norms while dealing in shares.

The individuals, Surajit Dutta and Mithilesh Kumar Jha, failed to comply with the summons dated November 20, 2019, January 6, 2020, January 13, 2020, and January 20, 2020, issued to them by the investigating authority, noted in two separate orders.

conducted an investigation between April 2017-September 2017 in the scrip of for the possibility of insider trading and volume manipulation by certain entities.

Investigation observed that a group of 12 connected entities were trading on NSE and BSE and they allegedly entered into trades that were in the nature of reversal/ synchronized/spot trade/ off market transaction.

Their act of not complying with the summons hampered the investigation process. Their conduct "shows brazen unwillingness" on their part to cooperate with the investigation of Sebi, a statutory regulator and such defaults seriously compromise the regulatory framework, the regulator said in similarly worded separate orders.

Sebi further said that not paying heed to the summons issued by Sebi and resultant non-cooperation with the process of investigation cannot be taken lightly. Consequently, the individuals are facing fine of Rs 5 lakh each.

In separate orders, Sebi levied a fine of Rs 5 lakh each on six entities for indulging in non-genuine trades in illiquid stock options at BSE.

Sebi conducted investigation into the trading activity in illiquid stock options on BSE between April 2014-September 2015 after observing large scale reversal of trades in the stock options segment of the BSE.

By indulging in such trades, the entities violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.

The entities are Binay Kumar Agarwal HUF, Alpna enterprises, Gourav Khandelwal, Neelam Ramniklal Dedhia, Om Sales Corporation and Niraj Damani.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Wed, October 27 2021. 19:51 IST
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