Market regulator Sebi on Monday slapped a total fine of Rs 1.03 crore on three brokers for indulging in trade manipulation as well as for failing to exercise due diligence in the matter of Gujarat Arth.
Sebi imposed a penalty of Rs 47 lakh on Ruchiraj Share & Stock Brokers and Rs 28 lakh fine each on Amrut Securities and Ved Finance for violating PFTUP (Prohibition of Fraudulent and Unfair trade Practices) regulations and stock borker norms.
According to a Sebi order, Ruchiraj Share & Stock Brokers placed large buy orders and intentionally kept on regularly updating the buy order which were subsequently deleted and created artificial market which allured the gullible investor to invest in the scrip of Gujarat Arth.
It noted that Amrut Securities and Ved Finance indulged in circular /reversal /synchronised trades.
By indulging in such activities, these brokers aided and abetted the client in trade manipulation and failed to exercise due diligence.
The order came following a probe conducted by the market regulator, from October 2003 to January 2004, into the alleged irregularity in the trading in the shares of Gujarat Arth.
