While imposing a fine of Rs 5 lakh each on the individuals, Sebi said these individuals "through their trading sustained artificial volume and price in the scrip for a period of time after which the price fell".
According to the watchdog, the individuals were connected to each other, and had executed circular and synchronised trades among themselves which contributed to more than 40 per cent of the total trading volume during the investigation period resulting from the circular trades.
A total of 299 circular trades were executed amongst the noticees (individuals) leading to no ultimate change in beneficial ownership, Sebi said in an order dated August 27.
Generally, synchronised or circular trading refers to a practice where the seller and buyer have an understanding between them on trading of specific shares.
"... when the noticees stopped engaging in the synchronised and circular trades, the trading volume in the scrip dropped suddenly and the price slowly moved downwards. The price on 27 July 2017 had fallen to Rs 42. As the trading volumes fell in August 2017, the price also fell to Rs 19 by end August.
"Thus, the facts on record clearly indicate that the trading by the noticees was manipulative in nature, created artificial trading volumes and helped sustain the price levels in an artificial manner," the order said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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