New Delhi: Market regulator I myself has stopped Global Infratech & Finance Limited, its directors and 12 other persons from the securities market for their role in the fraudulent scheme of trading in the shares of the firm.
According to an order passed by SEBI on July 16, the company and its directors – Praveen Sawant and Jagdish Chander Sharma – have been banned from the securities market for two years, while others have been banned for six months.
During their respective periods of restraint, they are also prohibited from associating themselves with any listed public company and any public company which intends to raise funds from the public or any intermediary registered with SEBI.
The investigation was conducted between June 2012 and September 2014.
The firm had made two preferential allotments in January 2012 and June 2012 and transferred some of its preferential allotment proceeds to three entities.
In addition, some associated preferential allottees, who were associated with Global Infratech, and thus linked to persons involved in price manipulation, sold their shares at the higher price of the manipulation. The shares were sold for a profit at the inflated/manipulated price.
SEBI said Global Infratech and its directors were also part of a scheme to manipulate the price of shares to benefit the respective preferential allottees.
Therefore, the entities have been banned from the securities market for infringing prohibition of fraud and unfair trade practices Criteria
In a separate order passed on Monday, SEBI imposed a total fine of Rs 7 lakh on three promoters of Geodesic Ltd in a case related to disclosure lapse.
It was observed that Prashant Mulekar failed to communicate the details of the shares weighted by him on nine occasions and also failed to inform the details of the invocation/issuance of the weighted shares on 10 occasions in violation of the market norms.
Also, he was obliged to make disclosures for several transactions carried out by him during the investigation period, but failed to do so.
The period of investigation was April 2012 – March 2013.
It was further observed that Prashant Mulekar, Jayshree Mulekar and Parmodini Mulekar were promoters and members of the promoter group of the company and hence were considered to be collaborating with each other.
They failed to make disclosures as mandated under market norms, due to change in their shareholding.
SEBI imposed a fine of Rs 5 lakh on Prashant Mulekar, while others were fined Rs 1 lakh each.
According to an order passed by SEBI on July 16, the company and its directors – Praveen Sawant and Jagdish Chander Sharma – have been banned from the securities market for two years, while others have been banned for six months.
During their respective periods of restraint, they are also prohibited from associating themselves with any listed public company and any public company which intends to raise funds from the public or any intermediary registered with SEBI.
The investigation was conducted between June 2012 and September 2014.
The firm had made two preferential allotments in January 2012 and June 2012 and transferred some of its preferential allotment proceeds to three entities.
In addition, some associated preferential allottees, who were associated with Global Infratech, and thus linked to persons involved in price manipulation, sold their shares at the higher price of the manipulation. The shares were sold for a profit at the inflated/manipulated price.
SEBI said Global Infratech and its directors were also part of a scheme to manipulate the price of shares to benefit the respective preferential allottees.
Therefore, the entities have been banned from the securities market for infringing prohibition of fraud and unfair trade practices Criteria
In a separate order passed on Monday, SEBI imposed a total fine of Rs 7 lakh on three promoters of Geodesic Ltd in a case related to disclosure lapse.
It was observed that Prashant Mulekar failed to communicate the details of the shares weighted by him on nine occasions and also failed to inform the details of the invocation/issuance of the weighted shares on 10 occasions in violation of the market norms.
Also, he was obliged to make disclosures for several transactions carried out by him during the investigation period, but failed to do so.
The period of investigation was April 2012 – March 2013.
It was further observed that Prashant Mulekar, Jayshree Mulekar and Parmodini Mulekar were promoters and members of the promoter group of the company and hence were considered to be collaborating with each other.
They failed to make disclosures as mandated under market norms, due to change in their shareholding.
SEBI imposed a fine of Rs 5 lakh on Prashant Mulekar, while others were fined Rs 1 lakh each.
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