SEBI receives Rs 1.5 crore from 6 entities for settling fraudulent share case
A settlement has been reached by six entities with SEBI by paying 1.5 crore for fraudulent trading in ECE Industries shares. The entities were alleged to have been involved in violating the Delisting of Equity Shares Regulations and the Prohibition of Fraudulent and Unfair Trade Practices norms.
It was observed by SEBI that ECE Industries came out with a buyback and delisting offer for its shares during the year 2016. It was found that these entities connected to the promoters of ECE funded the purchase of shares of the firm by investing in the equity shares of the company, and subsequently sold the bulk of the shares invested under the buyback offer of ECE to make it more attractive and thus contributed towards making the buyback offer successful.
