Capital markets regulator Sebi on Monday imposed a penalty totalling Rs 4 million on 13 entities for indulging in fraudulent trading in the shares of Rajlaxmi Industries Ltd.
The order comes after Sebi conducted a probe in the matter from January 2013 to September 2014 to ascertain the irregularities in the funding of preferential allotment by Rajlaxmi Industries.
In its probe, Sebi found that Rajlaxmi Industries and its management -- Aditya Jaipuria and Rahul Jagnani -- have played an integrated role in creating a scheme and device, wherein, the company has routed the fund received from other preferential allottees through conduits -- Dhanprayog Vintrade and Shivaangan Vintrade and funded eight allottees -- Deepak Agarwal, Deepak Kumar HUF, Dilipp Agarwal, Dilipp Agarwal HUF, Priti Agarwal, Sabita Agarwal, Sita Ram Agarwal and Vibha Agarwal for subscribing to the preferential issue of the company, the order mentioned.
Through such acts, they perpetrated such fraud on investors by giving an impression of capital infusion through preferential allotment and therefore, limited the genuine capital infusion and thus violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, it added.
Besides, in three separate orders, Sebi imposed a penalty of Rs 500,000 each on Karan Singh Dhillon, Madhuri Holani and Liladhar Premnarayan Navalkishore for violating PFUTP norms.
The case pertains to alleged irregularity in the stock options segment of BSE, leading to the creation of artificial trade volumes.
By indulging in such trades in stock options, they violated the provisions of PFUTP regulations.
(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.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU