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Sebi slaps Rs 9 lakh on Moneybee Securities, 2 clients


Mumbai, Dec 1 (PTI) Capital markets regulator Sebi has imposed Rs 9 lakh fine on brokerage Moneybee Securities and two of its clients for fraudulent trading in shares of New Horizon Leasing and Finance.

Securities and Exchange Board of India has found that Moneybee Securities and its clients – Dhiren Shah (HUF) and Yogesh Laxman Rege – had indulged in synchronised trades in the shares of New Horizon.

Finding them in violation of ‘Prohibition of Fraudulent and Unfair Trade Practices Regulations’, the regulator through a recent order has imposed a penalty of Rs 3 lakh on each one of them.

As per the order, Dhiren Shah is ‘karta’ of Dhiren HUF and is also director of Moneybee, while Rege is having trading as well as Portfolio Management Services account with the brokerage firm.

Sebi observed that Moneybee and Yogesh had contributed to price rise and positive LTP through synchronised trades. Yogesh had also contributed in establishing positive LTP (Last Trading Price) and NHP (New High Price) through various trades in the scrip of New Horizon.

In these trades Dhiren HUF was the counterparty and all the three “had acted in fraudulent manner and in connivance with each other”.

The case relates to Sebi probe into the trading in New Horizon shares from October 6, 2010 to February 4, 2011.

Probe found that there was no trading in the scrip of the New Horizon prior to investigation period as trading in equity shares of the company was suspended and the suspension was revoked on October 6, 2010.

During the entire investigation period, the scrip was traded in the price range of Rs 50 to Rs 119.7 with an average volume of 2,529 shares on BSE.

Post investigation period, the scrip was traded in the price range of Rs 95.75 to Rs 105.05 with an average volume of 1,922 shares on BSE.

Sebi observed that during the investigation period, trading in New Horizon’s shares took place on 34 days out of total 85 days. Further, out of 34 trading days, on 23 trading days, the scrip opened at a price higher than its previous closing price.

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