Vamshi Rubber Ltd officials fined for fraudulent trade. Capital markets regulator SEBI slapped a fine of Rs 21 lakh on two individuals for indulging in fraudulent trading in the shares of Vamshi Rubber Ltd.
The Securities and Exchange Board of India (SEBI) has imposed a fine of Rs 16 lakh and Rs 5 lakh on Nagad Sarwar and Altaf Ahmed G Nagad, respectively, “which will be commensurate with the violations committed by the noticees”.
Since, SEBI probe found that both the entities indulged in self trades while trading in the shares of Vamshi Rubber Ltd. Therefroe, created artificial volume in the scrip, leading to false and misleading appearance of trading.
Self trades defined as seller and buyer in a trade contract is the same person.Hence, actual beneficial ownership is’nt changed.
Nagad executed 187 self trades involving 19,727 shares. Hence, Altaf executed 11 self trades involving 1,437 shares.
Tjough, Both the entities indulged in activities. Hence, it violated the provisions of Prohobition of Fraudulent and Unfair Trade Practices.
According to the regulator, ficticious trade afdected the integrity of securities market. even though such trades may be minuscule in quantity.
Additionally, Arvind Kumar Saraf penalized for the penalty of Rs 4 lakhs. He delayed disclosures regarding the acquisition of Arcotech shares.
Saraf, along with the PACs, had acquired shares of Arcotech on two occasions. On February 5 he picked up 1 Lakh shares. It staked for 0.5 percent.
Arcotech promoter Sarf required to take necessary disclosures under Prohibition of Insider Trading (PIT) Regulations. However, he made the disclosure with a delay on both the occasions.
Final Words regarding Vamshi Rubber Ltd Case
Against 12 other entities watchdog disposed a case. Fraudulent trade practices increased in theses years. A lot of companies have fallen pray of frauds. In the fraudulent trade practices Vamshi Rubber Limited involved two individual officials of there company. To curb the problem SEBI imposed a fine. So SEBI imposed a fine on Vamshi Rubber Ltd of Rs.21 Lakhs on the company.
