These penalties have been imposed after a SEBI probe found that the three entities, including Gupta, were involved in manipulative trading in shares of Videocon Industries and NRB Bearings
New Delhi, Sep 20 (PTI) Market regulator Securities and Exchange Board of India (SEBI) has imposed a total penalty of Rs7.50 lakh on three entities for alleged manipulative trading in the scrips of Videocon Industries Ltd (VIL) and NRB Bearings Ltd (NBL), reports PTI.
SEBI has slapped penalties on Intec Shares and Stock Brokers Ltd (ISSL), Mansukh Securities & Finance Ltd (MSFL) and one Pankaj Gupta, according to three separate orders.
According to the regulator, the defaults committed by the three entities were 'repetitive in nature'.
While ISSL and MSFL, have to shell out Rs3.5 lakh separately as penalties, Gupta has to pay a fine of Rs50,000. SEBI said the penalties are commensurate with the defaults committed by them.
"Regarding repetitive nature of the default, I note that ISSL was indulged in the manipulative trades in the shares of Videocon Industries Ltd (VIL) as well as NRB Bearings Ltd (NBL) for six trading days," the regulator said in the order on ISSL case.
In a order on MSFL, SEBI said the entity was "indulged in the manipulative trades in the shares of VIL as well as NBL for six days".
It was found that ISSL and MSFL were involved in the manipulative trading of the companies for a period of six days.
These penalties have been imposed after a SEBI probe found that the three entities, including Gupta, were involved in manipulative trading in VIL and NBL shares for the period 1 May 2004 to 15 June 2004.
Meanwhile, the regulator had imposed a penalty of Rs2 lakh each on ISSL and MSFL on 30th July this year for manipulative trading in VIL shares during the period from 14 January 2004 to 26 February 2004.
SEBI had earlier slapped a fine of Rs10,000 on Gupta for allegedly indulging in unfair trading in VIL scrips. As per the regulator, all the three entities have paid the earlier penalties.