New Delhi, 22 June (IANS). The Securities and Exchange Board of India (SEBI) has banned two operators Shivprasad Pattia and Alkesh Narvare from the market for three years for fraud from investors.
According to SEBI’s allegations, both these operators cheated investors by producing volumes in an artificial manner in non -liquidity stock options.
The regulator has ordered both operators to return Rs 4.83 crore within 45 days.
Shivprasad Pattia and Alkesh Narvare have also imposed a fine of Rs 25 lakh by the Capital Market Regulator under Section 15 HA of the SEBI Act, 1992.
SEBI said in the order, “Both have been banned from reaching the securities market for a period of three years from the date of this order and directly or indirectly buying, selling or doing other transactions or in any way from the securities market.”
Additionally, they have been stopped from demat and physical form (except for the purpose of returning money) to their mutual funds, shares, securities.
The NSE has received several complaints from investors, stating that they had shared their credentials for good profits for algo/software trading with some WhatsApp group members, but later traded in their trading accounts, resulting in loss of millions.
Based on the above alerts and complaints, SEBI examined a group of slabs and narware-led institutions in alleged misuse of investors’ online trading kits, promising guaranteed returns from algo/software-based trading and illegal ‘out of the money’ (OTM) stock options were carried out in the stock options, which was carried out in an unseen. Funds from investors/complainants were to transfer or manage them to front institutions.
SEBI alleged that a plan was prepared under which the operators appointed the callers to woo investors to invest in the market and promise guaranteed returns.
Investors received constant calls and messages from these callers. The callers contacted investors on the pretext of guaranteed benefits through Elgo Trade or Automatic Software Trade.
After the operators took into confidence, the operators received their log-in credentials and then bet on the stock option in such a way that investors suffered a loss of premium.
-IANS
ABS/
