Sebi Cracks Down on Fraudulent Stock Scheme Operators
Sebi penalizes two individuals, Shivprasad Pattiya and Alkesh Narware, for their involvement in a fraudulent stock scheme. The duo is banned from the securities market for three years, fined Rs 25 lakh each, and ordered to return illegal gains of over Rs 4.83 crore plus interest.
- Country:
- India
Securities and Exchange Board of India (Sebi) has taken stern action against Shivprasad Pattiya and Alkesh Narware, barring them from the securities markets for three years. The regulatory body also imposed fines due to their role in orchestrating a fraudulent scheme that yielded over Rs 4.83 crore in illegal gains.
Pattiya and Narware were each fined Rs 25 lakh and instructed to pay within 45 days. The individuals must also return the illicit gains with interest, as per the directive from Sebi's Quasi Judicial Authority, backed by an investigation into their manipulative trades.
The probe revealed that the two exploited investor credentials for deceptive schemes, violating Prohibition of Fraudulent and Unfair Trade Practices rules. Sebi's order follows alerts about suspicious trades in illiquid stock options and complaints of investor losses through duplicitous strategies.
(With inputs from agencies.)
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