Market regulator Securities and Exchange Board of India (SEBI) has imposed cumulative penalties of ₹66 lakh on 28 entities for their role in fraudulent trading practices and for failing to comply with regulatory summons during an investigation into trading in the shares of ANI Integrated Services Ltd (AISL).
The penalised entities include Harsha Ishvarbhai Solanki, Nitaben Babulal Khalas, Sonalben Amitbhai Khalas, Taraben Kirankumar Padhiyar, Ravi Dipakbhai Barupal, Rakeshbhai K Pandya, Jayesh Ganpatlal Pansal, Rajaniben Jayeshbhai Pansal, Khushbu Arjunbhai Padhiyar, Bhavika Prakash Rathod, Rita Arvindbhai Rangi, Nimesh Kumar B Parmar, Badamilal Banshilal Garg, and Lataben Narotambhai Rangi.
The other entities are Navin Shankarlal Tank, Vishnu Shantibhai Parmar, Komal Vaghaji Chauhan, Dayaben Marvadi, Prakash Chunilal Mudethiya, Fulabhai Bhithor, Jigar Bhailalbhai Khalash, Bhargaviben S Raval, Ramnath Sharma, BB Commercial Ltd, Bhavesh Ortho Aids (proprietor Bhavesh Popatlal Rangi), SS Traders (proprietor Marvadi Parsotambhai), SR Traders (proprietor Maheshbhai Jayantilal Chauhan) and Ganesh Trading (proprietor Vairagi K Ganeshpuri).
SEBI adjudication order follows an investigation into trading activity in AISL shares between 1 March 2021 and 31 August 2021. The regulator found that several of the noticees had indulged in synchronised, reversal and circular trades, which created artificial volumes and a misleading appearance of market activity, in violation of the SEBI Act and the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.
According to SEBI, the entities executed coordinated trades among themselves that distorted the genuine market for the stock and misled investors. The order also records that a number of noticees failed to cooperate with the investigation despite repeated summons, aggravating the seriousness of the violations.
The investigation revealed that the group accounted for nearly 78% of the buy volume and about 77.97% of the sell volume in AISL during the period under review. SEBI observed that most of these trades resulted in negligible or no change in beneficial ownership, indicating that the transactions were aimed at inflating volumes and influencing prices rather than reflecting genuine investment interest.
During the same period, AISL’s share price witnessed a sharp rise, opening at around ₹25, touching a high of ₹55.40 and closing at ₹43.75. SEBI noted that this steep price movement coincided with intense trading activity by the connected entities, reinforcing the finding of market manipulation.
The regulator also highlighted extensive linkages among the noticees, including common addresses, fund transfers, shared trading devices and identical MAC IDs. Several entities were found to be operating from the same premises and using the same trading infrastructure, strongly pointing to coordinated and collusive activity.
SEBI further noted that funds were routed through multiple intermediary entities before being deployed in the market. These fund flows, combined with synchronised buy and sell orders placed within seconds of each other, were cited as crucial evidence of collusion.
Apart from violations relating to fraudulent and unfair trade practices, SEBI issued 12 notices to 12 noticees for non-compliance with summons issued during the investigation. Their failure to appear or provide information was held to have hampered the probe and constituted a separate breach of the law.
None of the noticees filed replies to the show-cause notices (SCN) or sought a personal hearing. Relying on past securities appellate tribunal (SAT) rulings, SEBI proceeded ex parte and treated the allegations as uncontroverted.
Taking into account the gravity of the misconduct, the repetitive nature of the trades and the impact on market integrity, SEBI concluded that monetary penalties were justified. The order reiterates that creating a false or misleading appearance of trading undermines the fairness and transparency of the securities market and cannot be condoned.
Of the total penalty, ₹42 lakh has been imposed jointly and severally on a group of noticees under Section 15HA of the SEBI Act for engaging in fraudulent and unfair trade practices.
In addition, 12 noticees have been fined ₹2 lakh each under Section 15A (a) of the Act for failing to comply with summons and for not furnishing information during the investigation.
Share India Capital Services Pays ₹36.07 Lakh to Settle SEBI Proceedings over IPO Disclosure Lapses
Moneylife Digital Team
12 February 2026
Share India Capital Services Pvt Ltd has settled adjudication proceedings initiated by the Securities and Exchange Board of India (SEBI) by paying a settlement amount of ₹36.07 lakh, ending regulatory action related to alleged...
SEBI Moves To Simplify Rules, Study Cost of Regulation; High-Level RIA Committee to Guide Reforms: Pandey
Moneylife Digital Team
12 February 2026
In a clear signal that India’s market regulator is shifting towards evidence-based rulemaking and cost-efficient oversight, Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey announced the formation of a...
Bank Mis-selling: RBI Draft Rules Bar Incentives, Forced Bundling and Dark Patterns by Banks
Moneylife Digital Team
12 February 2026
In a significant move aimed at cleaning up the way banks market and sell financial products, Reserve Bank of India (RBI) has proposed a sweeping overhaul of rules governing advertising, telemarketing and third-party product sales. If...
Better To Abolish RERA, It Only Helps Builders: Supreme Court
Debayan Roy (Bar
and
Bench)
12 February 2026
The Supreme Court on Thursday took a critical view of the functioning of real estate regulatory authorities, observing that they should be abolished as they only aid builders (State of Himachal Pradesh vs Naresh Sharma).
A Bench...
