Sebi bars Global Infratech, its directors, 12 others from securities market

Sebi has restrained Global Infratech and Finance Ltd, its directors and 12 other individuals from the securities market for their roles in a fraudulent scheme of trading in firm’s shares


SEBI | securities market | stock market trading

Markets regulator Sebi has restrained Global Infratech and Finance Ltd, its directors and 12 other individuals from the securities market for their roles in a fraudulent scheme of trading in the firm’s shares.

The company and its directors — Pravin Sawant and Jagdish Chander Sharma — have been banned from the securities market for two years, while others have been restrained for six months, as per an order passed by Sebi on July 16.

During their respective period of restraint, they are also restrained from associating themselves with any listed public company and any public company which intends to raise money from the public or any intermediary registered with Sebi.

The investigation was conducted between June 2012 – 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.

Besides, certain connected preferential allottees, who were connected to Global Infratech, and thereby connected to the individuals involved in price manipulation, sold their shares at the manipulated high price. The shares were sold at the inflated/manipulated price for benefit.

Sebi said that Global Infratech and its directors were also part of a scheme to manipulate the price of the shares to benefit connected preferential allottees.

Therefore, the entities have been barred from the securities market for violation of Prohibition of Fraudulent and Unfair Trade Practices norms.

In a separate order passed on Monday, Sebi levied a total fine of Rs 7 lakh on three promoters of Geodesic Ltd in a matter pertaining to disclosure lapses.

It was observed that Prashant Mulekar failed to intimate the details of the shares encumbered by him on nine occasions and also failed to intimate the details of the invocation/release of encumbered shares on 10 occasions, in violation of market norms.

Also, he was under obligation to make disclosures for several transactions done by him during the investigation period, but failed to do so.

The investigation period was April 2012 – March 2013.

It was further observed that Prashant Mulekar, Jayashree Mulekar and Paramodini Mulekar were promoters and members of the promoter group of the company and were therefore persons deemed to be acting in concert with each other.

They failed to make requisite disclosures, as mandated under market norms, on account of change in their shareholding.

Sebi levied a fine of Rs 5 lakh on Prashant Mulekar while others are facing a fine of Rs 1 lakh each.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor