New Delhi, Oct 31 (PTI) Markets regulator Sebi on Friday imposed penalties totalling Rs 2.64 crore on 20 individuals in the matter of price and volume manipulation in the scrip of Quasar India Ltd.
The
regulator slapped penalties totalling Rs 2.5 crore on 18 individuals to be paid by them jointly and severally. It also levied a fine of Rs 7 lakh each on Mrugesh Natwarlal Ruparel and Arpit Piyushbhai Shah.
"The 18 entities (Noticees 1 to 18) and noticees 19 (Mrugesh Ruparel) and 20 (Arpit Shah) were found to be connected to each other and were indulged in generating the volume in the scrip of Quasar resulting in price rise of the scrip.
"Further, the entities viz the 1 per cent shareholders of Quasar in connivance with other entities were key perpetrators in manipulating the scrip of Quasar and thus misled the investors into investing in scrip of Quasar which otherwise was very thinly traded," Sebi's adjudicating officer Amit Kapoor said in the order.
Kapoor added these indviduals collectively made a profit of Rs 1.96 crore by trading in the scrip of Quasar during the investigation period.
Therefore, the allegation that Noticees 1 to 18 have violated the provisions of Prohibition of Fraudulent and Unfair Trading Practices (PFUTP) regulations, stands established, Sebi said.
The regulator noted that Ruparel and Shah aided and abetted Pranav Kamleshkumar Trivedi in manipulating the scrip of Quasar, thereby flouting PFUTP rules.
They also failed to comply with the summons issued by the authority in a matter pertaining to violation of market norms.
"Noticees 2, 3, 5, 7, 11, 12, 13, 15 and 16, by entering into circular trades have created a misleading appearance of trading in the scrip by trading among themselves in the share of Quasar without any intention of change of ownership of the security and provide a false appearance of trading in such security to inflate or cause fluctuations in the price of Quasar," Sebi's Amit Kapoor said in the order.
The order came after the Securities and Exchange Board of India (Sebi) conducted investigation in the matter of price and volume manipulation in the scrip of Quasar India Ltd during the period beginning May 01, 2022 till December 31, 2023. PTI HG HG MR
