- Blue Bull did business in GG Overseas Private Limited
- SEBI during investigation found that company adopted wrong method
Jun 30, 2020, 06:58 PM IST
Mumbai. Capital market regulator SEBI has imposed a penalty of Rs 25 lakh on Blue Bull Equities for reversal trading in illiquid stocks. The business was done on the BSE listed shares. This company was doing this work with another company.
Business was not right in SEBI investigation
SEBI found in the investigation that the business was not genuine and an incorrect and misleading manner in which the ortific volume was created. During the investigation, SEBI found that the business was conducted from April 1, 2014 to September 30, 2015. Reversal trading means buying and selling shares in the same company. This creates a volume in the company's shares, which is created in an artificial way.
A total of 826 crore units were incorrectly produced
SEBI found that a total of 2.91 lakh trades were done. This created an artificial volume of 826 crore units. According to Sebi, the accused traded in a total of 234 units of contracts and 233 contracts produced 507 non-Genuine trades. This led to the creation of 1.51 crore ortific volumes. Bluebell did this business at GG Overseas Pvt.
SEBI said Blue Bull Equities violated the rules in many cases and this led to the creation of volumes in shares in an artificial manner. This led to fluctuations in share prices.