Popular Estate Management Ltd penalized by SEBI. New Delhi, (PTI) Markets regulator SEBI has imposed a total penalty of Rs 10 lakh on six entities including two promoters of Popular Estate Management Ltd in a matter related to manipulative trading in the shares market of the firm. The main aspect of the company is to look after
Since, of the five entities, the two promoters are Priyesh Ramanlal Patel and Bhumi Prathmesh Patel. The other four are Asha Rajendrabhai Patel, Krinesh Farms, Vikram Farms and Saranga Farms.
Analysis
As per six separate orders dated April 18 2018, SEBI has imposed a penalty of Rs 1 lakh each on the six entities for violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations and Rs 2 lakh each on the promoters for disclosure lapses.
Though, Securities Exchange Board of India (SEBI) investigated certain entities in the matter of trading activities. The entities listed on BSE. The period from January 1 to November 16, 2012.
Additionally, SEBI made three groups on the basis of trading pattern, off-market transfers and KYC details.
It was observed by SEBI that Priyesh Ramanlal Patel along with eight other entities in Group 1 had traded in the shares of the firm during the investigation period and contributed to last traded price (LTP), new low price (NLP) and first trades, as a result of which, artificial volume in the shares was created.
Therefore, group 1 included Bhumi Prathmesh Patel, Asha Rajendrabhai Patel, Krinesh Farms, Vikram Farms and Saranga Farms.
The noticee along with other eight entities executed trades among themselves, which contributed to negative LTP, NLP and also executed first trade during the investigation period,” SEBI said in the order regarding Priyesh.
The regulator noted that by executing these trades, Priyesh influenced the price of the scrip of Popular Estate Management Ltd during the investigation period.
Priyesh held manipulative trading. It created artificial volume. That led to false appearance of trading. Hence, it caused fluctuations in the price of shares of the company.
Final Words regarding Popular Estate Management Ltd case
“Therefore, I conclude that the noticee (Priyesh) has violated… The PFUTP Regulations, 2003,” the regulator said.
Besides, the company officials failed to make disclosure to the company. As well as the BSE with regard to their shareholding. It required time as prescribed under the PIT (Prohibition of Insider Trading) Regulations.
