Photo: Reuters
Photo: Reuters

Sebi slaps 70 lakh fine on Regency Hospital, directors

The directors were found violating norms pertaining to fraudulent and unfair trade practices

New Delhi: Sebi has slapped a total penalty of 70 lakh on Uttar Pradesh-based Regency Hospital as well as its two promoters for fraudulent trading in the company’s shares.

In two separate orders issued on Friday, Sebi imposed fine of 15 lakh on Regency Hospital, and 25 lakh each on Managing Director Atul Kapoor and Whole Time Director Rashmi Kapoor.

They were found violating norms pertaining to fraudulent and unfair trade practices. Both are also promoters of the firm.

Additionally, 5 lakh was imposed on Regency for failing to disclose to the exchange about information received from its promoters regarding their pledged securities.

The watchdog examined the movement of the scrip during the period from April to September 2011. Subsequently, it was found that the firm and the directors along with other connected entities executed synchronised trades, reversal trades and self-trades among themselves, resulting in artificial volumes.

“Noticees employed and induced the services of the connected entities to trade among themselves to show an appearance of volume in the market by also executing structured, synchronised, reversal and self trades to show artificial volume.

“This was also coupled with the impact on traded prices by executing first trades for the day so as to set the price for trading day, contributing the price rise in the scrip," regulator said.

The noticees are Regency Hospital and the two directors.

This story has been published from a wire agency feed without modifications to the text.

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