Sebi slaps Rs 11.90 cr fine on 19 entities for 'pump and dump' scheme

Sebi has imposed penalties totaling Rs 11.90 crore on 19 entities and barred them from the securities market for up to five years for engaging in a pump and dump scheme related to Superior Finlease Ltd. Fines ranging from Rs 10 lakh to Rs 5 crore were levied on entities including Rajneesh Kumar, Ashish P Shah, and Kirtidan K Gadhavi, with 17 individuals, including Kumar, Shah, and Gadhavi, prohibited from securities markets for five years. \r

Sebi's 54-page final order revealed a meticulously orchestrated scheme by Rajneesh Kumar, utilizing connected entities to manipulate SFL's stock price before offloading shares to unsuspecting investors through the help of 'operators.' This resulted in inflated prices and increased public shareholdership, impacting investor confidence and market fairness. \r

Sebi also directed the entities to disgorge unlawful gains worth Rs 3.89 crore plus interest. The action followed a complaint received by Sebi regarding suspicious trading in SFL's scrip, leading to an interim order and subsequent disposal of appeals by the Securities Appellate Tribunal.