Sebi imposes a total fine of Rs 1.05 crore on 21 entities in the case of Jolly Plastic Industries

NEW DELHI: Sebi has imposed a total fine of Rs 1.05 crore on 21 entities for executing fraudulent operations in the code of Jolly Plastic Industries Ltd.

The regulator had carried out an investigation into the Jolly Plastic Industries Ltd deed between February 2012 and November 2014.

During the investigation, it was discovered that these entities were connected to each other and allowed themselves to manipulate the scrip price downwards through a complex network of accumulation and distribution of shares in the market.

Thereafter, the execution of market transactions between them at a lower circuit filter price to reduce the price and facilitate certain entities to acquire shares at a lower price for various manipulation purposes.

In addition, they contributed to the negative LTP (last trading price) by executing trades at a lower circuit price every day.

The entities by trading with each other below the LTP in the manipulated scrip and created a deceptive appearance of trading in the scrip by that trade, the regulator noted.

Therefore, entities by engaging in fraudulent business practices have violated the provisions of the PFUTP Regulation (Prohibition of Fraudulent and Unfair Business Practices).

The regulator has imposed a fine of Rs 5 lakh each on 21 entities: Aavia Buildtech, Aavia Softech, Accurate, Services, Ashok Kumar Jain HUF, Ashvin Verma, Bluechip Fincap Serve, Capital Securities, Century Buildmart ,, Laxmikant Gaggar, Kanchan Bastimal Jain, Mold Trading, Ocean Share Brokers, Poonam Mittal, Ram Kumar Goyal, Steady Services, Sure Portfolio Services, Surya Medi Tech and.

In a separate order, Sebi imposed a fine of Rs 5 lakh on Sapna Dilip Bombaywala for fraudulent trade in the Jolly Plastic Industries Ltd (JPIL) case.

Separately, the regulator has imposed a fine totaling Rs 15 lakh on auditor M V Damania&co(currentlyknownasdnv&co)andhispartnerforwronglycertifyingthatprintpackagingusedtheproceedsoftheipoaccordingtothesubjectmatteroftheproblem.