Securities & Exchange Board Of India Levies Rs 28 Lakh Fine On Seven Firms For Manipulating Kailash Auto Finance Scrip
[ By Bobby Anthony ]The Securities & Exchange Board of India (SEBI) has slapped a fine of Rs 28 lakh on seven companies for fraudulently trading in the scrip of Kailash Auto Finance Ltd (KAFL).The penalized companies are Bholebaba Suppliers Pvt Ltd, Akriti Advisory Services Pvt Ltd, Sarvottam Advisory Pvt Ltd, Eversafe Promoters Pvt Ltd, Overall Vincom Pvt Ltd, Subhankar Exim Pvt Ltd...
The Securities & Exchange Board of India (SEBI) has slapped a fine of Rs 28 lakh on seven companies for fraudulently trading in the scrip of Kailash Auto Finance Ltd (KAFL).
The penalized companies are Bholebaba Suppliers Pvt Ltd, Akriti Advisory Services Pvt Ltd, Sarvottam Advisory Pvt Ltd, Eversafe Promoters Pvt Ltd, Overall Vincom Pvt Ltd, Subhankar Exim Pvt Ltd and Supernova Advertising Pvt Ltd.
The SEBI passed its order recently after it carried out a probe between the period of January 2013 to December 2015 after it noticed unusual price and volume movement in the KAFL scrip.
The SEBI investigation revealed that the penalized companies had created a misleading appearance of trading in the scrip as well as manipulated its price which violated Prohibition of Fraudulent and Unfair Trade Practices norms.
According to the SEBI order, the penalized companies had no genuine or legitimate intention to actually sell KAFL shares. Instead, sales of the scrip were executed in a fraudulent manner in order to create a misleading appearance of trading the scrip at higher prices to manipulate its price.
Therefore, the SEBI has passed an order slapping fines in the range of Rs 1 lakh to Rs 7 lakh on the firms.