Sebi fines 10 entities for manipulating Millitoons Entertainment’s share prices

Sebi imposed fines in the range of ₹5-10 lakh on Preyashbhai Sathvara, Sejalben Prayashkumar Sathvara, Suresh Ramanlal Prajapati, Dharmeshbhai J Vaghela, Vijay Madhusudanbhai Koshti.

The market watchdog also fined Parmar Mukeshkumar, Mehulkumar Balvantbhai Tundiya, Harishkumar Sakariya, Rekhaben Harishbhai Sakariya and Mobonair Wireless.

The following order came after Sebi carried out an investigation in the scrip of Millitoons Entertainment Ltd (now known as Colorchips New Media Ltd) during March-April 2018.

ALSO READ: Faad Network gets Sebi nod to launch ₹300 crore angel fund

In the probe, the market regulator found that Preyashbhai, Sejalben, Prajapati, Vaghela, Koshti, Mukeshkumar, Tundiya, Harishkumar and Rekhaben executed 97 synchronised trades which contributed 21.63 per cent of the market volume in the scrip of MEL at BSE. The trades were conducted during the investigation period and were repetitive in nature, further contributed ₹2.35 to net last traded price (LTP).

They repeatedly entered into synchronised trades thereby created a misleading appearance of trading in the shares of the firm at BSE without any intention of change of ownership, thereby violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, the Sebi said in the order.

In addition, the regulator also observed that it had issued summons to Preyashbhai, Sejalben, Suresh, Dharmeshbhai, Vijay, Parmar, Mehulkumar and Moboair to provide information to the investigating authority.

However, they failed to comply with the summons and also failed to furnish requisite information which hampered the investigation.

Meanwhile, in a separate order, the regulator slapped a fine of ₹24 lakh on two entities for failing to make public announcement related to the acquisition of shares of Onesource Ideas Venture Ltd. The fine has to be paid jointly and severally.

In another order, Sebi imposed fines totalling ₹15 lakh on 5 entities for flouting regulatory norms in the matter of Ejecta Marketing Ltd.

With PTI inputs.