Sebi imposes Rs 20 lakh fine on 5 entities for manipulating R.M. Mohite Textiles scrip price

New Delhi, Sep 3 () Markets regulator Sebi levied a total fine of Rs 20 lakh on five entities for manipulating the price of shares of R.M. Mohite Textiles Ltd. The regulator conducted a probe in the scrip of the firm between October 2010 and April 2011 on observing high volatility in the price of the shares. During the investigation, Sebi observed that the scrip price of the company had increased from Rs 255 on October 1, 2010 to Rs 380 on February 4, 2011. Thereafter, the price of the scrip started decreasing and touched Rs 123.15 on April 8, 2011 and finally closed at Rs 220.35 on April 29, 2011. It was noted that the five entities were involved in the price manipulation as they contributed to the positive last traded price (LTP) by trading among themselves. The entities dealt in the shares of the firm in a "coordinated manner to artificially inflate the price," Sebi said in an order dated August 30. "In the light of the facts of the present case, the nexus observed amongst the noticees and the manner in which the noticees have coordinated with one another to execute trades with significantly high LTP conclusively establish that the trades of the noticees were not genuine and were executed as part of an artifice/method used only to artificially manipulate the price of RMMTL," it added. By doing so, the entities have violated relevant provisions of Sebi Act, 1992 and Prohibition of Fraudulent and Unfair Trade Practices Regulations. Accordingly, the regulator imposed a fine of Rs 10 lakh on Bharatkumar Baldevbhai Parmar, Rs 5 lakh on Tushar Rameshbhai Patel, Rs 3 lakh on GGF Mercantile Pvt Ltd and Rs 1 lakh each on Heena Rameshbhai Patel and Vipul Hiralal Shah. SRS RVK
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