Sebi imposes Rs 10 lakh penalty on Jalco in REI Agro case

Tags: News
Capital market regulator Sebi today slapped a penalty of Rs 10 lakh on Jalco Financial Services for fraudulent and unfair trade practices in REI Agro shares.

The Securities and Exchange Board of India found that Jalco Financial, along with related entities, indulged in synchronised trades that created artificial volumes in the REI Agro scrip in 2005.

"...It is established beyond doubt that the noticee had executed synchronised and self trades and thereby created false and misleading appearance of trading in the scrip and generated artificial volume," Sebi said in an order today.

Accordingly, the watchdog imposed a penalty of "Rs 10 lakhs on the noticee."

Sebi investigated the alleged irregularity in trading of REI Agro shares for the period from August 9, 2004, to September 16, 2005, wherein wide fluctuations in price and volumes at the BSE and NSE were observed.

The probe found that a group of entities -- Jalco Financial Services, Shailaja Finance Ltd (SFL), Signet Suppliers Pvt Ltd (SSPL) and Dwinger Agent (together referred to by Sebi as the 'Jalco Group') connected to each other had matched trades among themselves through synchronised orders, which created artificial volumes in REI Agro scrip.

"...It is amply clear that the noticee is connected to the other Jalco group entities and the orders were punched in/placed with a prior arrangement with Dwinger, SFL and SSPL with a solo intention of creating artificial interest and volumes in the scrip," the market regulator said.

EDITORIAL OF THE DAY

  • Protocols need to be quickly put in place for the success of Digital India

    The government has kicked off Digital India initiative in style. Companies too have queued up in large numbers with bagfuls of money.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Simon J Evenett

Will Germany be able to deliver?

The BRICS aren’t the only countries whose stature has grown ...

Rajgopal Nidamboor

Up the ante of your conscious existence

It sounds cryptic, but is not as complex as it ...

Gautam Gupta

The ‘fake’ issue needs to be taken seriously

E-commerce players are witnessing unbelievable growth globally. Competition is increasing ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture