Sebi penalises 3 individuals in Covidh Technologies case

The order came after Sebi conducted an investigation in the scrip of Covidh Technologies Ltd (CTL) to ascertain violation of norms for the period February 16-21, 2017.

The regulator found that Yadav and Agarwal received 4.6 lakh shares and 4.2 lakh shares off-market at a discount and simultaneously disseminated SMSes recommending buying the scrip of Covidh.

Alokam, the director and promoter of the company, received money from Yadav and also had off market transactions with Agarwal.

All of them then offloaded shares of CTL and created 69.98 per cent of the total market volume during the investigation period.

Yadav and Agarwal also created artificial buy volumes in the market by placing majority buy orders during the early hours of trading.

“There was no corporate announcement made hence buying of shares was to provide misleading appearance as buyer and by means of SMS circulation attract new buyers in the scrip…,” Sebi’s Adjudicating Officer Barnali Mukherjee said in the order passed on Thursday.

She also noted that several summons and reminders were issued to Yadav and Agarwal, but they failed to reply.

Thereafter, the noticees contravened the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices).

In another order, the regulator slapped a fine of Rs 10 lakh on two entities for fraudulent trading in the scrip of Sun &

.

Besides, in a separate order, the regulator levied a fine of Rs 9 lakh on seven entities for indulging in manipulative trade practices in the matter of

.

The amount has to be paid by the entities jointly and severally.

The order came after Sebi conducted an investigation in respect of alleged manipulation in the scrip of Sanco Industries Ltd (

) for the period between January to November 2016.

The regulator also imposed fines totalling Rs 7 lakh on three entities in a case pertaining to disclosure lapses in the matter of

.