Sebi Imposes Rs 50 Lakh Fine In Fraud Trade

Market regulator Sebi has slapped a fine of Rs 50 lakh on one Prashant Kamble for indulging in fraudulent trading in shares of 21 companies including SKS Logistics and Sanguine Media.

Sebi Imposes Rs 50 Lakh Fine In Fraud Trade

The Securities and Exchange Board of India (Sebi), in an order, has imposed "a penalty of Rs 50 lakh ...on Prashant Kamble, which will be commensurate with the violations committed by the noticee".

A Sebi probe found that Kamble indulged in self-trades, (same buy client as well as the sale client for a given trade resulting in no change of beneficial ownership) while trading in shares of 21 firms on BSE between August 2008 and June 2010 and created artificial volume in the scrip, leading to false and misleading appearance of trading.

Apart from executing self trades in the shares of SKS Logistics and Sanguine Media, he was also indulged in fraudulent trading in the scrips of Crystal Software Solutions, Jumbo Bag, Gandhinagar Hotels and Interworld Digital among others.

"...the noticee (Kamble) has executed such an illegal operation repeatedly by indulging in 189 self trades on 88 trade days, in a total of 21 scrips, for 75,725 shares during the investigation period, thus, detrimental to the smooth functioning of the securities market," Sebi said in an order dated July 31.

By indulging in such activities, Kamble has violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.

PTI

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