SEBI slaps fine on 23 individuals for defying regulatory norms
The penalty, ranging from Rs.1 lakh to Rs.10 lakh per person, has to be deposited within 45 days
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SEBI slaps fine on 23 individuals for defying regulatory norms The penalty, ranging from Rs.1 lakh to Rs.10 lakh per person, has to be deposited within 45 days The Securities And Exchange Board of India (SEBI) has imposed hefty fines amounting to Rs.1.55 crores on 23 entities for defying regulatory norms by trading in Mentha Oil Futures contracts at the Multi Commodity...
SEBI slaps fine on 23 individuals for defying regulatory norms
The penalty, ranging from Rs.1 lakh to Rs.10 lakh per person, has to be deposited within 45 days
The Securities And Exchange Board of India (SEBI) has imposed hefty fines amounting to Rs.1.55 crores on 23 entities for defying regulatory norms by trading in Mentha Oil Futures contracts at the Multi Commodity Exchange (MCX).
SEBI’s adjudicating officer Vujayant Kumar divulged that Noticee 3 to 21 had a premeditated arrangement and artifice for the active concealment of actual beneficiary positions. This was in violation of position limits prescribed by SEBI. He said there was a deliberate accumulation and cornering to stock the oil through connected noticees.
Kumar stated, “By actively concealing ultimate beneficial ownership of mentha oil stock, the noticees created the false and misleading appearance of trades. It was funded by the noticees without disclosing their connection.”
MCX observed that certain entities were associated with North End Foods Marketing and funding by it had led them to add over 75 percent of the tidal exchange deliverable stock of mentha oil held in the exchange.
In 2018, MCX had submitted before SEBI and looked into whether certain related entities purposefully wanted to corner the market on the long side in mentha oil contracts leading to violation of position limits.