SEBI Disposes of Fraudulent Trading Case against 3 Entities
Bangalore: Market regulator SEBI has imposed a penalty of 
2 lakh on a Vikas Bengani and disposed of cases against three other entities in a matter related to fraudulent trading in shares of T Spiritual World (TSWL).
In four separate orders dated September 17, SEBI (Securities and Exchange Board of India) dropped case against three entities Vintel Securities, Mange Sharma and Adolf Pinto, while slapping a fine of 2 lakh on a Vikas Bengani. In its order against Bengani, SEBI said, " it is established that the Noticee (Vikas Bengani) had executed fraudulent trades in the scrip of TSWL which created false and misleading appearance of trading and artificial price rise in the scrip."
"hereby impose a penalty of 2 lakhs on the Noticee (Vikas Bengani)" the order said. In the cases of Vintel Securities, Mange Sharma and a broker Adolf Pinto, however, the regulator disposed of the matter. It observed that the charges against them did not stand established conclusively.
In its probe related to trading in the scrips of TSWL during the period July 12, 2004 and February 04, 2005, SEBI had found a sharp movement in the stock.
T Spiritual World, which was trading at 28 level in July 2004 saw a significant decline and during February 2005, went down to 5 apiece.
During the period total 2.07 crore shares got traded in 130 days with an average daily volume of 1,59,961 shares. The investigation revealed that a group of clients including Vikas Bengani, Vintel Securities and Mange Sharma connected with the company and to each other as well. These entities had dealt in the scrip of the company in a fraudulent and manipulative manner that created false and misleading appearance in the scrip facilitating the promoters to offload their shareholding.
It was also alleged that Vintel Securities dealt in the scrips through Galaxy Broking. While, Mange Sharma was dealing in the scrips through Adolf Pinto, a broker.
In its order, SEBI charged Adolf Pinto of aiding and abetting Mange Sharma and another entity in executing trades of TSWL as a broker and failing to maintain complete and proper KYC forms of its clients. Stating that Adolf Pinto did not fully comply with the requirements under the KYC norms, the regulator, however, said that, "these are technical non-compliances in nature which do not warrant imposition of monetary penalty."
In the case of Mange Sharma and Vintel Securities, SEBI gave the entities benefit of doubt by stating that "the allegation of price manipulation by them do not stand as the same is not established conclusively."
Source: PTI
2 lakh on a Vikas Bengani and disposed of cases against three other entities in a matter related to fraudulent trading in shares of T Spiritual World (TSWL).
In four separate orders dated September 17, SEBI (Securities and Exchange Board of India) dropped case against three entities Vintel Securities, Mange Sharma and Adolf Pinto, while slapping a fine of 2 lakh on a Vikas Bengani. In its order against Bengani, SEBI said, " it is established that the Noticee (Vikas Bengani) had executed fraudulent trades in the scrip of TSWL which created false and misleading appearance of trading and artificial price rise in the scrip."
"hereby impose a penalty of 2 lakhs on the Noticee (Vikas Bengani)" the order said. In the cases of Vintel Securities, Mange Sharma and a broker Adolf Pinto, however, the regulator disposed of the matter. It observed that the charges against them did not stand established conclusively.
In its probe related to trading in the scrips of TSWL during the period July 12, 2004 and February 04, 2005, SEBI had found a sharp movement in the stock.
T Spiritual World, which was trading at 28 level in July 2004 saw a significant decline and during February 2005, went down to 5 apiece.
During the period total 2.07 crore shares got traded in 130 days with an average daily volume of 1,59,961 shares. The investigation revealed that a group of clients including Vikas Bengani, Vintel Securities and Mange Sharma connected with the company and to each other as well. These entities had dealt in the scrip of the company in a fraudulent and manipulative manner that created false and misleading appearance in the scrip facilitating the promoters to offload their shareholding.
It was also alleged that Vintel Securities dealt in the scrips through Galaxy Broking. While, Mange Sharma was dealing in the scrips through Adolf Pinto, a broker.
In its order, SEBI charged Adolf Pinto of aiding and abetting Mange Sharma and another entity in executing trades of TSWL as a broker and failing to maintain complete and proper KYC forms of its clients. Stating that Adolf Pinto did not fully comply with the requirements under the KYC norms, the regulator, however, said that, "these are technical non-compliances in nature which do not warrant imposition of monetary penalty."
In the case of Mange Sharma and Vintel Securities, SEBI gave the entities benefit of doubt by stating that "the allegation of price manipulation by them do not stand as the same is not established conclusively."
