.jpg)
%20(3).jpg)
₹4.83 crore fraud in the name of trading, SEBI imposed a three-year ban on two accused
Stock Market: SEBI has banned Shivprasad Pattiya and Alkesh Narware for three years for committing fraud in the stock market. Both of them had made illegal earnings of ₹4.83 crore by misleading investors in the name of algo trading, after which SEBI took action in the case and has also ordered to recover this amount with interest.
Securities and Exchange Board of India (SEBI), the stock market regulator, has barred two persons, namely Shivprasad Pattiya and Alkesh Narware, from the stock market for three years in the case of cheating investors. Apart from this, an order has also been passed for the recovery of illegal earnings worth Rs 4.83 crore with interest from both individuals.
It came out in the course of the inquiry by SEBI that both the defendants had cheated the investors by undertaking fraudulent transactions in 'Out of the Money' (OTM) options. These persons would gain control over the trading accounts of the investors through WhatsApp groups by providing guaranteed returns by virtue of algorithmic trading. Then money was transferred by them from these accounts into their own controlled accounts.
In this case, SEBI has said that this action is a message to protect investors and maintain the integrity of the market, apart from stopping false earnings. The statement issued said that if any person tries to cheat investors by giving fake behavior, the lure of big earnings, then they will have to face strict action and serious consequences.
