Regulations
SEBI slaps Rs5 lakh fine on a individual in Betala Global trading case

SEBI said Jalaj I Batra indulged in circular/reversal synchronised trades with other brokers and clients in Betala Global Securities shares

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has slapped a fine of Rs5 lakh on an individual for allegedly facilitating fraudulent trading practices in shares of Betala Global Securities Ltd (BGSL), reports PTI.

 

SEBI said a Jalaj I Batra indulged in circular/reversal synchronised trades with other brokers and clients in the shares of Betala Global Securities.

 

"...impose a total penalty of Rs5 lakh on the noticee (Batra)...the penalty is commensurate with the default committed by the noticee," SEBI said in its order.

 

In a probe conducted by SEBI, the regulator found a spurt in the share price of BGSL during 2nd May-21 November 2003. The regulator said the company's scrip price jumped by 254% and a total of 1.54 crore shares were traded.

 

SEBI said a group of clients connected to each other i.e., a Mahesh Mistry traded in the shares of the BGSL.

 

Batra, being a part of Mahesh Mistry Group, bought 15.35 lakh shares for Rs9.41 crore and sold a total of 6.04 lakh scrips valued Rs 6.45 crore.

 

"The noticee purchased 10.91% of the total market volume and sold 6.29% respectively. The noticee contributed 9.96% and 3.92% of the circular trades buy and sell volume respectively," SEBI said.

 

SEBI also said that evidence is suggesting that the Mahesh Mistry Group, of which noticee was a part, followed a modus operandi of artificially inflating the price and creating false volumes by executing the synchronised transactions through their brokers.

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