The Stock market regulator, SEBI on tuesday has slapped a total penalty of Rs 2.38 crore on 23 entities for indulging in fraudulent trading activities in the shares of Steel Exchange India Ltd (SEIL).
The imposed penalty was levied in the range of Rs 5 lakh to Rs 8 lakh on 23 entities and individuals.
About Fraud
SEBI noted that the entities were connected to each other and had entered into synchronised trades and reversal trades among one another in order to create artificial volume in the scrip of SEIL.
They were repetitively and in significant quantities entering into reversal and synchronised trades in the scrip of SEIL during the investigation period.
The creation of artificial volume by the entities was accompanied by the circulation of false-positive SMSes in favour of SEIL, which further attracted the investors into dealing in the shares of the company
Press the 🔔 Icon for notifications of all new updates
