Capital markets regulator SEBI on Wednesday imposed a total fine of Rs 50 lakh on 23 entities for violating securities market norms in dealing in shares of Unisys Softwares and Holding Industries Ltd. The latest order comes after Sebi scrutinized the shares of Unisys during the period January 2010 to November 2014.
The order said that he cheated the investors by giving the impression of capital inflow through preferential allotment. Actual capital flows into the company were limited. This is a violation of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices).
Further, the regulator said Unisys repeatedly made incorrect quarterly shareholding pattern disclosures to stock exchanges. The regulator has imposed a fine of Rs 4 lakh on Unisys and a collective fine of Rs 46 lakh on Unisys and 22 other entities for violation of norms.
Action on non-genuine trades
In nine separate orders separate from the Unisys case, SEBI has imposed a penalty of Rs 46.5 lakh on several entities for non-genuine trades in the illiquid stock options segment of the BSE. The regulator imposed a fine of Rs 5 lakh each on Nashik Entertainment World Developers, Preeti Raika, Dhanvat Rai Shah HUF, Vinod Kumar Kothari & Sons HUF, Saurabh Agarwal HUF, Kamal Kishore Malu HUF, Om Prakash Banka HUF, Beena Gupta and Bina Kedia . At the same time, a fine of Rs 1.5 lakh has been imposed on Ashok Kumar Rajgaria HUF.
- SEBI also fined BSE and NSE
In another case, SEBI has also imposed penalty on BSE and NSE. It is alleged that he has bought Karvy Stock Broking Ltd. (KSBL) for misappropriation of securities of customers worth Rs 2,300 crore. SEBI has issued two separate orders in this regard. A penalty of Rs 3 crore has been imposed on BSE and Rs 2 crore on National Stock Exchange (NSE).
The case pertains to misappropriation of securities worth Rs 2,300 crore by KSBL. Related securities were linked to more than 95,000 customers. KSBL had pledged these securities through only one demat account. The money raised by pledging the securities was used by KSBL for itself and its group entities.