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

  • Reservations, along with economic subsidies, must go to get India moving

    A young man, in his early twenties, starts an agitation demanding reservation for the community he represents.

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

Urs Schoettli

The China story isn’t over yet

China’s financial markets are currently in the eye of a ...

Anuja Sharma

Love yourself to love others

“There are two basic motivating forces: fear and love. When ...

Gautam Gupta

It's a 'blog eat blog' world out there

Let me tell you, fashion journalism has truly taken the ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture