Securities and Exchange Board of India (SEBI) on Thursday imposed a penalty totalling Rs 25 lakh on five individuals for indulging in fraudulent trading in the shares of Cupid Trades and Finance Ltd for the period of January 2010 to December 2014.
A penalty of Rs 5 lakh each has been levied on Devang Mukandray Patel, Sonal Devang Patel, Manishaben Maheshkumar Patel, Rajesh Kumar and Kishor Sharma.
The entities deliberately manipulated the price of the scrip and created a misleading appearance of trading in the scrip to induce innocent investors in the securities market, the order said.
Section 15HA of SEBI Act - Penalty for fraudulent and unfair trade practices
“If any person indulges in fraudulent and unfair trade practices relating to securities, he shall be liable to a penalty which shall not be less than five lakh rupees but which may extend to twenty five crore rupees or three times the amount of profits made out of such practices, whichever is higher”.