SEBI slaps Rs17 lakh fine on five entities in Murli Industries case
MDT/PTI 03 January 2013

The manipulation in shares of Murli Industries was initially discovered by the I-T Department, which was referred to SEBI. I-T Department had found that 10 firms incorporated by MIL were "dummy" companies and they had cornered a large part of the MIL shareholding

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has imposed a total penalty of Rs17 lakh on five entities for not providing information regarding a probe into alleged manipulation in trading of shares of Murli Industries Ltd (MIL), reports PTI.

 

The information was sought by the Investigation Authority (IA) of the market regulator.

 

In five separate orders, SEBI has slapped a fine of Rs2 lakh on Dhanesh Capital Services, Rs4 lakh on Fortune Commodeal and Rs5 lakh on Namokar Consultants. Besides, a penalty of Rs3 lakh each has been imposed on two entities -- Sunayana Commercial and Sanskar Trade-Link.

 

SEBI, on various occasions, had served summons to the five entities seeking information related to alleged manipulation in shares of MIL.

 

The market regulator, in its orders on 31st December, observed that by not submitting complete details despite having the same, "appears to be a deliberate action/strategy on the part of the noticee (five entities) to not cooperate with the regulatory mechanism".

 

The manipulation in MIL shares was initially discovered by the Income Tax Department, which was referred to SEBI.

 

IT Department had found that 10 firms incorporated by MIL were "dummy" companies and they had cornered a large part of the MIL shareholding.

 

In this regard, the regulator had asked the them to furnish details that could help in the probe. In their submissions, the entities have admitted to trading in shares of the dummy firms.

 

The IA (SEBI) was conducting detailed investigations in respect of dealings in the scrip of MIL in the wake of prima facie findings that certain dummy companies were incorporated to deal in MIL shares as well as reference from the IT Department indicating possible manipulation in FCCB pricing by Dangi/Ashika group entities.

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