SEBI slapped a fine of Rs2 lakh on one Dimple Shah and another Rs3 lakh on Piyush Shah for manipulative and deceptive trading which led to creation of artificial demand and a false appearance of trading in the shares of BGSL
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a total penalty of Rs5 lakh on two individuals for alleged fraudulent trade practices in shares of Betala Global Securities Ltd (BGSL), reports PTI.
In two separate orders, SEBI slapped a fine of Rs2 lakh on one Dimple Shah and another Rs3 lakh on Piyush Shah for manipulative and deceptive trading which led to creation of artificial demand and a false appearance of trading in the shares of BGSL.
"I am of the view that the facts of the present case clearly bring out an element of fraud and unfair trade practices indulged in by the noticee through brokers in connivance with other entities of Mahesh Mistry Group," SEBI's adjudicating officer PK Kuriachen said in similarly-worded orders.
In a probe conducted by SEBI, the regulator found a spurt in the share price of BGSL during 2nd May to 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 and collectively referred to as 'Mahesh Mistry Group' traded in the shares of the BGSL. Both Dimple Shah and Piyush Shah were found to be part of the group.
Dimple Shah had acquired 54,300 shares valued at Rs26.60 lakh and sold a total of 7,910 shares for Rs7.33 lakh of the company, SEBI said.
On the other hand, Piyush Shah bought 5.32 lakh shares for Rs4.24 crore and sold 6.82 lakh shares for Rs5.67 crore.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
