Sebi Fines 13 Entities Rs 4 Million in Fraudulent Business Deal
Capital markets regulator Sebi on Monday imposed a fine totaling Rs 4 million on 13 entities for engaging in fraudulent trading in the shares of Rajlaxmi Industries Ltd.
The order comes after Sebi conducted an investigation into the matter from January 2013 to September 2014 to verify irregularities in the financing of the preferential award by Rajlaxmi Industries.
In its investigation, Sebi found that Rajlaxmi Industries and its management – Aditya Jaipuria and Rahul Jagnani – played an integrated role in creating a system and arrangement, in which the company channeled funds received from other preferred beneficiaries through conduits – Dhanprayog Vintrade and Shivaangan Vintrade and funded eight beneficiaries – Deepak Agarwal, Deepak Kumar HUF, Dilipp Agarwal, Dilipp Agarwal HUF, Priti Agarwal, Sabita Agarwal, Sita Ram Agarwal and Vibha Agarwal for subscribing to the show preferential company, the order mentioned .
By such acts, they perpetrated such fraud on the investors by giving the impression of capital injection by preferential allocation and, therefore, limited the real capital injection and thus violated the PFUTP standards (Prohibition of fraudulent and unfair business practices), he added.
Furthermore, in three separate orders, Sebi fined Karan Singh Dhillon, Madhuri Holani and Liladhar Premnarayan Navalkishore each Rs 500,000 each for violating PFUTP standards.
The case concerns an alleged irregularity in the stock option segment of BSE, leading to the creation of artificial trading volumes.
By engaging in such stock option trading, they violated the provisions of the PFUTP regulations.
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