Sebi fines 20 individuals for manipulating Quasar India share price

The Securities and Exchange Board of India (Sebi) has recently imposed penalties totaling Rs 2.64 crore on 20 individuals for their involvement in price and volume manipulation in the stock of Quasar India Ltd. Among these individuals, 18 have been collectively fined Rs 2.5 crore, with an additional fine of Rs 7 lakh each imposed on Mrugesh Natwarlal Ruparel and Arpit Piyushbhai Shah.

According to Sebi’s adjudicating officer Amit Kapoor, these individuals were found to be interconnected and engaged in artificially boosting the trading volume of Quasar’s stock, which led to an increase in its price. Kapoor highlighted that the entities, including 1% shareholders of Quasar, worked together to manipulate the stock, deceiving investors who were encouraged to invest in a thinly traded security. During the course of the investigation, these individuals collectively profited Rs 1.96 crore through their trading activities in Quasar’s stock.

Sebi concluded that Noticees 1 to 18 violated the Prohibition of Fraudulent and Unfair Trading Practices (PFUTP) regulations. Additionally, Ruparel and Shah were found to have helped Pranav Kamleshkumar Trivedi in manipulating Quasar’s stock, thereby contravening PFUTP rules. They also neglected to comply with the regulatory authority’s summons related to market norms.

Furthermore, a number of individuals, including Noticees 2, 3, 5, 7, 11, 12, 13, 15, and 16, engaged in circular trading, creating a false impression of trading activity in Quasar’s stock. By conducting trades among themselves without any intention of changing ownership, they artificially inflated or caused fluctuations in the stock price, misleading investors.

These penalties were the result of an investigation conducted by Sebi into the manipulation of prices and volumes of Quasar India Ltd’s stock from May 01, 2022, to December 31, 2023. Sebi continues to enforce regulations to ensure fair and transparent trading practices in the Indian market, protecting the interests of investors and maintaining the integrity of the financial system.