SEBI comes down heavily on firms for manipulative trading

SEBI comes down heavily on firms for manipulative trading

The market regulator found six firms guilty for indulging in manipulative trading in the Biocon case and banned them for two years

The Securities and Exchange Board of India (SEBI) has come down heavily on six entities and debarred them for two years each from the capital market for indulging in manipulative trading in the shares of Biocon Limited.

The market regulator found half a dozen entities, namely Gangwal Sunil Kumar, Vihit Investment, Mohd Faisal, AKG Securities and Consultancy, Paramount Incorporation and Minesh Jormalbhai Mehta, had engaged in price manipulation in the Biocon scrip at NSE cash market on 29 June 2017 during the last half an hour and managed to establish higher settlement price.

Along with the ban, SEBI has also imposed ₹10 lakh each in penalty. They have been ordered to pay the penalty within 45 days.

In its probe, the market regulator found that all the six entities had engaged in price manipulation in the Biocon scrip.

"Noticees have acted as a group and had entered into these trades in the cash segment for the purpose of securing a higher settlement price in the futures market where noticees no. 2, 3, 4 and 6 (Vihit Investment, Mohd Faisal, AKG Securities and Mehta) had taken long position in the last half an hour on June 29, 2017," SEBI said in its 86-page order.

In addition, the regulator has directed these four entities to disgorge the unlawful gains made by them along with an interest of 12 per cent per annum.

SEBI noted that by indulging in such trades, all the six entities violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.