The regulator SEBI has banned three entities from the capital market for a year for indulging in insider trading in shares of Infibeam Avenues Ltd (IAL).
The entities facing the ban are Shah Dhiren Mahendrakumar (HUF), Ami Dheeran Shah and Effluence Fincon Service (P) Ltd as per a final order passed by SEBI on 28 April.
In addition, they are barred from buying, selling or otherwise dealing with IAL’s securities directly or indirectly in any manner for a period of two years.
Also, the Securities and Exchange Board of India (SEBI) imposed a penalty of Rs 15 lakh on each entity.
It further states that the amount of Rs 2.61 crore has been kept as fixed deposit by entities with SEBI, “along with the accrued interest, stands disorganized and sent to the Investor Protection and Education Fund (IPEF) Will go. “
An investigation was conducted into the shares of IAL for the period November 2016 to June 2017 to ascertain whether some entities had traded while in possession of unpublished price sensitive information (UPSI).
Trading in shares of a company while in possession of the same UPSI violates the provisions of the PIT (Prohibition of Insider Trading) Regulations.
During the investigation, SEBI found that three entities, collectively known as the Dhiren Group, unfairly profited by trading in shares of IAL, while UPSI was related to stock splits.
During the period of UPSI, Dhiren Group had bought a total of 8.32 lakh shares worth Rs 81.29 crore and sold 3 lakh shares for Rs 30.19 crore. During the post UPSI period, the group sold 2.55 lakh shares worth Rs 32.98 crore, it added.
The three units were found to be linked to promoters / directors / key management personnel of the IAL and thus UPSI had access, SEBI said.
By engaging in such trade, the entities have violated the provision of insider trading norms. Further, they have come to know that unlawful profits have been made by violating the provisions of securities laws, Sebi has noted.
In a separate order, SEBI has barred six entities from Capital Markets for up to two years.
In addition, six entities have been asked to stop the wrongful gains made by them.
Suresh Shetty, Suresh Shetty (HUF) and Emerging Securities have been banned from the capital market for two years. In addition, he has been barred from dealing with Suprajit Engineering’s securities for three years. In addition, the regulator imposed a fine of Rs 30 lakh on each of them.
HUF means Hindu undivided family.
Reetha Shetty, Vanijya Investment & Trading and Shruti Shetty have been banned in the capital market for a year. Also, he is banned from buying or selling the company’s shares for two years.
In addition, SEBI imposed a penalty of Rs 15 lakh on each of these three entities.