New Delhi: Markets regulator SEBI on Monday imposed a fine of Rs 25 lakh on three entities for indulging in fraudulent trades in the scrip of AGC networks and violating stock brokers norms.
The three entities are Nirshilp Securities, Shailesh Shah Securities and Nirpan Securities.
The Securities and Exchange Board of India (SEBI) had conducted a probe into the trading of scrip of AGC from March to August 2012.
During the examination, SEBI found that Nirshilp through brokers (Nirpan and Shailesh) had executed 421 self trades leading to false and misleading appearance of trading in the scrip.
Further, Nirpan and Shailesh as brokers failed to carry out their business according to the code of conduct for stock brokers and their lack of vigilance led to creation of fictitious and deceptive trading, the regulator said.
By executing self trades, Nirshilp violated PFUTP (Prohibition of Unfair and Fraudulent Trade Practices) while Nirpan and Shailesh contravened Stock Brokers Regulations.
Accordingly, SEBI fined Nirshilp Securities and Shailesh Shah Securities Rs 10 lakh each while Rs 5 lakh penalty was imposed on Nirpan Securities
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