SEBI imposes Rs1 lakh fine for synchronised trading

SEBI carried out investigation into alleged irregularity in trading in the shares of 12 entities

New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs1 lakh on Sunil Kumar Mehta for alleged indulging in synchronised trading activities in shares of 12 companies including Ushdev International and Lotus Eye care Hospitals, reports PTI.
The alleged synchronised or circular trading in these companies happened from 1 March 2009 to 15 December 2009 on the Bombay Stock Exchange (BSE).
SEBI, in an order dated 31 August 2012, slapped Rs1 lakh fine on Sunil Kumar Mehta.
“In my view, the penalty imposed on the noticee (Sunil Kumar Mehta) is commensurate with the defaults committed by him,” adjudicating officer PK Kuriachen said in the order.
Synchronised or circular trading refers to a practice where the seller and buyer may have an understanding between them on trading of specific shares.
SEBI carried out investigation into alleged irregularity in trading in the shares of 12 entities—Allcargo Global Logistics, Asian Star Company, KSL & Industries, Mavens Biotech, Panoramic Universal, Rasi Electrodes, Sat Industries, Ushdev International, KBS Capital Management, Lotus Eye care Hospitals, MVL and Anil Products.
The probe revealed that a group of entities namely, Sunil Kumar Mehta, Manish Mathur, Bhavesh Kothari, Suresh Hanswal, Hitesh Mahendra Jain, Rakesh H Jain, Bhavesh Jain, Jitendra Kumar Jain and Hemlata Ramesh Hankare were linked with each other. They, acting in collusion, traded in the shares of the 12 companies.
According to the order, Mr Mehta on his own account has traded only in one scrip—Panoromic—in which he bought 1,800 shares and sold 1,600 shares.
“The amount of loss caused to an investor or group of investors also cannot be quantified on the basis of the available facts and data,” it added.
As per the order, it was alleged that Mr Mehta, acting in collusion with others, orchestrated the manipulation of trading volume and price of various scrips with the use of trading account/bank account of a number of entities (some of whom were his front entities) in violation of norms.




5 years ago

one lakh fine!!!!!!!!!!!!!!! It is a peanut? there were circular trading taken place and the Watchdog found out and then penalized with one lakh fine. Great joke. how much monies involved in this circular trading. this is not enough. this is the weakness of our System. Now god only have to safeguard and to protect the Indian retail investors.

Karnataka in the limelight for all the wrong reasons?

While parts of Karnataka are reeling under severe drought, 14 MLAs, some accompanied by their family members, have taken an overseas “study tour” to South America!

Karnataka is suddenly in the news for several reasons. The first major news is the clearance received from the Supreme Court for some mining companies in ‘A’ category to recommence their operations.
It may be noted that Category ‘A’ mines are those where the miners have either committed no or minor illegalities during the operations; but this permission is subject to their compliance with statutory clearances such as the approvals from the mining department, environmental and pollution clearances. They would need to undertake the responsibility for proper rehabilitation and reclamation of the depleted mines in a time bound manner. Not a small order to comply, but this pronouncement is at least a great leap for the activities to recommence in Karnataka iron ore mines.
Due to the erratic and poor monsoon conditions in many areas of the state, which have been declared as “drought affected”, farmers have been assured of assistance.
It may be recalled only recently, a six-member central drought team visited affected villages, many of which are short of potable water necessitating the long three km walk to get them every day. We had also mentioned, in our earlier coverage, that the villagers have been assured of potable water supply “within a month”, though, this team chose to come to the site in a helicopter at great cost. (Farm subsidies should go to make farmers self-sufficient in the long run)
Farmers had also complained of fodder shortage and had sought assistance to increase the wages to Rs250 per day instead of Rs155 under the Mahatma Gandhi National Rural Employment Act.  Northing has been done or heard on this score.
Additionally, the farmers had also demanded waiver of loans taken from nationalized banks instead of giving crop loss compensation, for which they had already paid insurance premium for over a year.
A protest for non implementation of the tank filling project in Baleshwar taluka upset the farmers so much they began a fast, led by local MLA MB Patil. The farmers do not want any lip service but demand actual implementation of the promises made. They are expected to launch a fast till 10th September, after which it is likely to become indefinite fast covering neighbouring villages, as more and more farmers are expected to join this agitation.
In the meantime, Shobha Karadlaje, the state energy minister, has charged lukewarm response from the Union government in the allotment of coal to Karnataka’s thermal power stations. She had urged the Centre to ensure regular supply of coal to power stations at Bellary, Yadlapur and Yermaras.
Because of the poor monsoons, Karnataka is forced to purchase power from independent private power generators. One wonders why Karnataka has not thought of involving Neyveli Lignite Corporation of Tamil Nadu into some sort of joint venture so that an independent thermal power station be established, using lignite as fuel and supply the generated power to the southern states, bulk of which be given to Karnataka as the principal partner?  Surely such a proposal is worth investigating further, as this could be helpful to the “Southern Sisters”.
In the meanwhile, instead of austerity measures, and without paying heed to the entreaties of chief minister Jagdish Settar, 14 MLAs, some of whom accompanied by their family members, have taken an overseas “study tour” to South America! Times Now, which has the visuals of this luxury jaunt by the MLAs, has been telecasting the visit for more than 24 hours now. It is now clear how these MLAs know how to blow tax payers money in such overseas jaunts under the guise of undertaking a “study tour”.  Click here to watch the video.
Now that the documented visit has been seen on the TV by millions of voters in Karnataka, as a face-saving measure, a ‘study’ or “project visit” will have to be organized by their ‘local’ connections. It is time that the voters decide what is good for them and record a suitable welcome to the delegation when they return, by voting them out of the office!
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce and was associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US. He can be contacted at [email protected].)


DHL to trim Blue Dart stake from 81% to comply with SEBI norms

Collaboration between Blue Dart Express and Deutsche Post DHL will not be affected by the transaction and Deutsche Post DHL remains fully committed to the domestic market, said a statement from the German company Deutsche Post DHL

Mumbai: Deutsche Post DHL said it will bring down its stake in Blue Dart Express, held through its subsidiary DHL Express Singapore, to comply with minimum public shareholding requirements, reports PTI.
Deutsche Post DHL currently holds 81% in the Mumbai-based express logistic firm, a DHL Express India official said when contacted, but did not reveal when and how they will achieve the objective.
When contacted, a Blue Dart spokesperson refused to comment saying only DHL can talk on the matter.
Future collaboration between Blue Dart Express and Deutsche Post DHL will not be affected by this transaction and Deutsche Post DHL remains fully committed to the domestic market, said a statement from the German company.
The move comes in the wake of the Securities and Exchange Board of India (SEBI) directive to have at least 25% of the promoter holding in all listed companies with the public by next June.
The 53-billion euros Deutsche Post DHL, which is a world leader in postal and logistics group, said the move is enable the domestic company to comply with the new minimum public shareholding norms, which demands listed companies to have at least 25% of their stake with the public by next June. 


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